Loans can be redeemed or paid back in three ways:
1) The entire lump sum amount of interest and principal can be repaid at the end of the loan period.
2) The interest on loan can be paid back at the end of each year and the principal can be paid back at the end of the term of the loan.
3) The interest and the principal can both be repaid monthly which is also popularly known as equated monthly installments.
The concept of redemption or repayment of loans has been explained vividly in this video presented by Mr J Kulkarni on behalf of the Insurance Institute of India.
https://www.youtube.com/watch?v=aXzDctYv49M&list=PLs7ffEMvVtT1l7dDR3kI03WgRJahLYpej&index=8
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