All you wanted to know about credit limit

Credit limit on a credit card is the maximum amount that a cardholder can borrow on their credit card. The credit limit on a credit card is set by a bank at the time of credit card disbursal and is decided after taking several factors into the mind. You cibil score will be affected by a credit utilisation on your credit limit.cibil score

The bank issuing a credit card will decide a credit limit on your credit card. One of the most important factors looked by a bank is your current cibil score. An applicant for a credit card will sign and complete know your customer (KYC) form mentioning all his details. After processing KYCs of a customer, banks will extract cibil score of the applicant from cibil’s website. Past credit history of the applicant would be analysed and a final credit limit would be assigned to the applicant depending upon his repayment potential.

cibil scoreApart from cibil score a bank would also look into applicant’s income, job stability, year of experience etc.It is often the case that despite having a higher income , a borrower don’t get a higher limit on his credit card. This happens due to a bad cibil score.

There are few measures that a borrower can take to get a higher credit limit on his credit card. Let us look at them –

  • Maintain a good cibil score.
  • Do not default on any emi or credit card payments.
  • Maintain a optimal balance of secured and unsecured loans.
  • Do not apply for multiple credit cards at once.
  • Maintain a track record of your credit card payments. Make sure that you don’t over utilise on your credit card utilisation limit.


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FAQs on EMI calculator

An EMI calculator is easy to use utility tool that can be used by borrowers to calculate their emi. Apart from providing usual information like loan emi, tenure, rate of interest etc, emi calculator will also provide information for a specific loan. Let us look at frequently askedEmi calculator questions on eni calculator

Q1. Are calculators for for home, personal and car loan same?

Ans. At the basic level, most of the online emi calculators are same but specific emi calculators like home loan or car loan will ask for specific information for a specific loan.


Q2. What is the difference between online emi calculator and excel calculator?

Ans. There is not a lot of difference between both of them but online emi calculators are EMI calculatoreasy to use and can be used by without any technical knowledge but with excel calculators you might be required to have a little knowledge of excel programming and how excel works which cant be learnt in few days.


Q3. Will banks provide emi calculators?

Ans. Yes, these days most of the banks and NBFCs provide calculators on their website.


Q4. Why should a borrower use an online emi calculator?

Ans. A borrower must use an emi calculator as it is easy to use and gives precise information regarding your loan proposal in a matter of seconds. Moreover, online emi calculators also provide this information in easy to understand pictorial format.EMI calculator


Q5. Is it the same emi that I have to pay for my bank loan as it is mentioned on online emi calculator?

Ans. Assuming that banks also proceed with the same rate of interest and amount that you have entered on online emi calculator then emi would come out be same on bank’s welcome letter but if bank changes or modify any of the above parameters then your emi would change with online emi calculator.

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How to use EMI calculator

EMI stands for equated monthly installment and it is the amount that you have to pay in return of loan that you have received from the bank or financial institution. It is one of the most important decision criteria used by borrowers to make a decision about their loan Emi calculatorproposal.

One can easily calculate his or her emi by using any online emi calculator available. Online emi calculators are easy to use and give instantaneous information regarding your loan proposal. Apart from providing usual information like loan amount, rate of interest, loan tenure etc, most of the emi calculators provide specific information required for a specific loan. Let us look at what information that you need to put in these emi calculators –

  1. Loan amount – This is the amount that you need to borrow from a bank or EMI calculatorfinancial institutions. Most of the emi calculators will ask for specific amount to be put in loan amount field.
  2. Interest rate – It is the rate of interest that a bank or financial institution will charge from you for using their funds.
  3. Tenure – It is the duration for which you require a loan amount for. You can change this data as per your wish to obtain a right emi for you.
  4. Processing fee – It is the fees that a bank or financial institution will charge a borrower for processing a loan for you.This amount usually varies from a 0.5% to 4% of the loan amount.EMI calculator

You can take help of a colleague or a banking representative to enter these values on emi calculator. An emi calculator will instantly reveal your loan emi after processing this information. An emi calculator will present this information in easy to understand pictorial format.



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Benefits of EMI calculator

EMI stands for equated monthly installment that you have to pay in return of loan sanctioned by banks and financial institutions. One can easily calculate his or her emi with the help of an online emi calculator. Let us look at the various benefits of an emi Emi calculatorcalculator –

  1. Convenience – The ease with which calculations can be made with this online tool is incomparable to calculations done by hand with pen and paper. In a matter of milliseconds, you can make a decision about your loan proposal by taking advantage of online emi calculator.
  2. Accuracy – If you were to do calculations with a pen or paper , you can preety EMI calculatorwell do mistakes while entering rate of interest, tenure, loan amount etc.But, with online emi calculator, you can perform these calculations with hundred percent accuracy.
  3. Fast calculation – With pen and paper, you will take hours and hours to perform calculations related to your loan. But, with online emi calculator you can perform these calculations at a click of the mouse. You don’t have to check and recheck your calculations each time with these online emi calculators.
  4. Specific to each loan – Biggest advantage of an online emi calculator is that, it is specific to each type of loan that a borrower wants to extract information for. You will get information related to home loan only if you are using home loan emi calculator.EMI calculator
  5. Graphic representations – Most of the online emi calculators would not only provide information related to your loan. But, these calculators would also provide information in a graphical manner and present a pictorial representation of each and every data points like principal outstanding, time remaining, rate of interest etc.
  6. Ammortisation table – Ammortisation table is one of the most important information that an emi calculator will provide you with. It will also show you how the loan will progress over time.
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Types of EMI calculator


EMI stands for equated monthly installment and it is the amount that you have to pay in return to pay your loan amount to the banks or financial institutions. It is one of the important decision criteria for a borrower along with loan tenure and loan amount. You can easily calculate your loan emi with the help of various online emi calculator Emi calculatoravailable online. Let us look at various types of online emi calculator available online in detail –

  1. Home Loan EMI calculator – The home loan emi calculator is one of the most important tools available to a home buyer. It can show various common features associated with an emi like tenure, monthly payment, rate of interest etc. Apart from EMI calculatorthis, a home loan emi calculator also provides facility to include pre payment towards the home loan payment. It is very useful for the borrowers who have opted for pre payment of emi.
  2. Car Loan EMI calculator – The car loan emi calculator can be used to calculate monthly payments that you have to pay in return to buy a car. This calculator will also tell you about your monthly emi payments, date of payments, processing charges etc. Down payment that you pay for your car loan will not be considered for calculating your car loan emi.
  3. Personal Loan EMI calculator – Personal loan emi calculator is the best tool available for a borrower going for a personal loan from a bank. Personal loan EMI calculatoremi calculator will also ask you information about your current organization, total work experience, tenure etc to calculate your loan eligibility.
  4. Loan against property EMI calculator – You can utilize your own property to get funding for your needs. An emi calculator for loan against property will take usual inputs like loan amount, rate of interest, loan tenure etc to calculate your monthly emi.
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Information an EMI calculator provides

An EMI calculator is one of the best tools in the hand of a borrower. With the help of an emi calculator you can easily calculate your monthly emi that you have to pay each month to fully repay your loan. You have different options when it comes to a emi
calculator. With these emi calculators you can easily get all the information that you need for your loan repayment for any type of loans including loan against property, home loan, personal loan etc. Let us look at the important information that an emi calculator provides for a borrower –

  1. EMI – EMI stands for “equated monthly installment”. These are the monthly EMI calculatorpayments that you have to pay to repay your loan. Along with rate of interest and tenure this is the most important information from a borrower’s point of view.
  2. Breakup of emi – Most of the online emi calculators also break emi into its two parts i.e. principal and interest. You can easily view breakup of each emi on online emi calculators.
  3. Remaining balance – EMI calculators would also give you information about remaining loan amount that you have to pay on a specific date. This information will help you in managing your expenses and income as you know beforehand about the loan amount that is remaining on your loan schedule.Emi calculator
  4. Amortization schedule – You have an easy access to the date on which you faq2have to pay your loan amount with the help of an emi calculator.
  5. Loan paid up to date – Emi calculators would also inform you about percentage of loan that you have paid upto now and what is left to be paid.

An emi calculator is the best friend for a borrower who is going for a lending from a bank or a financial institution. It is more important for the loans of large ticker size like home loan and loan against property.

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Is EMI always a good option?


We live in a world where every consumable item present on earth can be avail through emi. EMI stands for equated monthly installment that a purchaser or a borrower has to pay in equal interval of time (usually each month) in return for purchasing or using and asset or commodities. With increased penetration of banks and financial institutions, you can avail anything like home, car, and electronic appliances in form of emi. Usually, consumers search for online emi calculator before going ahead with any purchase on emi. Let us look at various advantages and disadvantages on purchase with emi-


  1. Power to buy – EMI gives you power to buy items which a consumer wouldn’t be able to buy at one go. For example, a salaried individual would find it very difficult to buy a home in a metro city without the help of an affordable emi from banks.emi calculator
  2. Affordable high priced commodities – EMI has given power to consumer by making costly things affordable for them.
  3. Ease of payment – EMI gives ease of payment to most individuals as it results in very minimal outgo from a customer’s pocket on monthly basis. One can easily calculate his monthly outgo with the help of any online emi calculator.


emi calculator  Disadvantages –

  1. Higher amount paid – By paying for an item under emi, consumers have to pay extra to the banks. This extra cost is interest that a financial institution charges for using their funds over a period of time.
  2. Long term debts – EMI results in long term debt for a consumer. Contrary to payment in lump sum, emi will go over a period of time and will add extra burden on consumer’s pocket.
  3. Serious consequences – Skipping your emi or defaulting on payments can result in serious consequences for a consumer. In case of any mortgaged backed loan like home loan or car loan, bank has a full right to legally takeover the mortgaged asset in case of the long term default. It is better to use any online emi calculator to truly assess your repayment capacity before going ahead with any loan.

As we can see from above article, emi has both advantages as well as disadvantages for a customer. EMI is light on pocket for a customer and results in a smooth payment but it will always results in higher payment. It is always advisable to read fine print of agreement and use online emi calculator to assess your repayment capacity.

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Pre emi or full emi?


EMI stands for equated monthly instalment and have to be paid by a borrower to repay his loan that he has borrowed from a bank or a financial institution. You can repay your loan amount by following two methods of Pre EMI and Full-Emi. Let us look at each option in detail and study the merits/demerits associated with each option –emi calculator


  1. Pre Emi – Pre emi is the interest component of the loan amount disbursed that you pay until full disbursal is done. For a under construction home, you will pay interest component of your loan until construction is complete. Your emi payments will start only after pre emi phase. It is advantageous for the consumers as with time their disposable income would increase and they can start their full emi at the optimal time. You can easily calculate your pre emi easily online with the help of an emi calculatoremi calculator
  2. Full emi – You also have an option to pay full emi even when the disbursal is done in stages. In this method, you will start paying your full emi from the start of construction phase itself.

Paying full emi is always beneficial except in the following cases-

  • If you can invest money in different financial assets to earn greater returns on them as you pay less principal in initial stages.
  • You are looking to sell the property immediately after construction phase is complete.
  • You are expecting a salary raise after some time in the near future.
  • You are renting during construction phase and cannot afford to pay both rent and full emi at the same time.

At the end of the day, it is upto investor to decided between full emi and pre emi. There are plenty of online emi calculator which can easily calculate your monthly cash outgo for each month during loan repayment. You should always utilize these online emi calculators to arrive at a decision best suited for your condition.

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Impact of demonetisation on investing and growth of India

Recent ban on big notes of denomination of Rs 500 and Rs 1000 has the potential to impact each and every indian’s life in some way or another. A common theme associated with this move is that it would lead to some “short term pain” but will result in amazing “long term gain”. It is one of the boldest move taken by any government yet by investing their credibility.investing
This move has resulted in severe short term cash and credit crunch in the hands of consumers. This cash crunch can lead to a slowdown in demand in next few quarters to come. With decreased demand, growth rate is expected to slowdown in near future. This slowdown should be expected by us as India is a cash driven economy with more than 85% of cash was in big notes denomination and suddenly this cash has been taken out of system. The duration of slowdown in economy would also depend on how efficiently government is able to replace old notes with new ones. With low consumer sentiment and less cash for disposal, investing activities in stock markets or other asset classes are expected to come down in short term.ROI
This move was planned by investing in plan for future. There are several positive results that can be achieved with this move. This move will result in reduction of black economy and increase in size of formal economy. This increase in formal size of the economy would result in increase tax revenues by the government. These tax revenues than can be utilized by investing in big nation building projects which demands huge capital expenditures like highway, power, steel, nuclear projects etc. It is expected that lakhs of crores of money would be deposited into the banks by 31st December. This will increase the money supply available to banks and will result in lower ROI for loans and lower emi as a result. Though, Fixed deposit rates are expected to come down in majority of banks due to surplus of money available to the banks.
This move is already welcomed by various investors and organizations like IMF. India has always been ranked way below its potential due to severe corruption in every level of administration. This step has the potential to impact some part of existing corruption by making huge amount of black money as unusable. This step is already seen by big investors both abroad and within country as a step in right direction. We can expect a spur in investing activities in years to come if these move is followed by more bold moves in time to come.

Every bold step as some level of risk attached to it and this step is no exception. This exercise is seems to taken with right intent and it may have some short term pain for citizens but, it promises to be a game changer for India in time to come.

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7 Indian government schemes for best investment plan

best investment planThere are many best investment plans launched by government of India to boost the financial stability of the citizens and to make India a economically developed nation. These investments schemes also act as social security for the consumer and also ensure a comfortable future for the common citizen. Let us look at 7 Indian government schemes for best investment plan-

  1.       Sukanya samriddhi Yojna – It is a small saving scheme for your daughter’s marriage. It is a part of government of India’s “Beti bachao Beti padhao mission”. This scheme is aimed at education and marriage of girl’s cibil scorechild. You can open an account on your daughter’s name between 0-10 year’s age. Minimum amount to be invested is Rs 1000 and maximum money that can be invested is Rs 150000 a year. Scheme tenure is 21 years with no premature withdrawal allowed. A girl child can operate this account after attaining age of 10 years. Interest rates in this scheme are around 8.5% annually.
  2.       Pradhan Mantri Jeevan Jyoti Beema credit score rangeyojana – It is a life insurance scheme launched government of India in budget of 2015. You need to pay Rs 330 as premium per year and will receive 2 Lakhs in case of policyholder’s death.
  3.       National pension scheme – This is a voluntary pension scheme introduced to fulfill your retirement requirements. It provides tax benefits for investment up to Rs 50000 under section 80CD in addition to 150000 under section 80C.  This scheme has dual advantage of tax benefits as well as retirement saving.short term investment
  4.       Public provident Fund (PPF) – It is a long term saving scheme launched by government of India. The savings on this account usually earns a rate of interest of around 8.1% compounded annually. You can open a PPF account with initial investment of Rs 100. This scheme also has advantage of tax exemption and is a perfect option investment option for salaried individuals.
  5.       Atal Pension Yojana – This scheme loan against lal dora propertyguarantees a pension of 1 thousand to 5 thousand for a holder after reaching age of 60. Under this scheme government would also contribute 50% of the money. This investment scheme is best suitable for individuals under lower income group or working in unorganized sector.
  6.       National Saving certificate (NSC) – NSC is a very popular savings and investments option in India. This is a bond issued by a government of India for a period of 5 to 10 years. Investments up to Rs 1 Lakhs are tax exempted under section 80C.  It provides an annualized return of 8.1% ROIand is one of the most popular investment schemes for government employees.
  7.       Pradhan Mantri jan Dhan Yojana – This scheme is perfect for economically weaker section of the society who does not have a banking account. This scheme offers basic financial services like saving account, deposit account, insurance, pension, remittance to the account holder. An account holder can contribute minimum of Rs 500 to maximum of Rs 2 lakhs.

cibil score calculatorThe entire investment options scheme discussed above provides a good return with additional advantage of tax saving under different schemes, that is why they tend to fall under some best investment plans of India. These schemes are best option for an individual who wants security as well as income for future. With government backing these schemes, you can be rest assured about safety of your money and returns.

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