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Old 21st May 2007, 12:19   #47 (permalink)
ramki067
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Join Date: Sep 2006
Location: BANGALORE
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Nikunj,
Your excel is fabulous and very accurate too!. Thanks a lot. One small Question, doesn't the scheduled payment reduce in reducing method over time.? It shows the same for all 5 years! I'm still new to reducing/flat interest rates.

Regards,
Ramki.

Quote:
Originally Posted by nikunj_cal View Post
Well it does not give the option for a fixed one ( you will have to feed the reducing balance rate ) but i can do a search on the fixed rate thing if u want) ,but we can find that out from the sheet itself and it is very simple . Here is how :-
1)All banks quote a reducing balance rate . For ex sbi quoted me 12%
2) Feed the loan Amount , Loan Period/Tenure, No. OF Installments per year ( = 12 , one each month from jan to dec) and the reducing balance rate
3) A list of EMI 's will be displayed in the excel sheet
4)In the top right corner a total amount of interest for the entire tenure is quoted .
5) Interest = (Princiapl X Rate X Time )/100
Therefore :- Rate = (Interest X 100)/Principal x Time

Interest = Total Interest Amount Displayed in Excel Sheet
Principal = Loan Amount
Time = Duration of the Loan ( in years )


Voila you have the fixed rate !!!

@ Ramky - got your pm , will mail you the excel sheet when i reach home , replied the same thing via pm too .

I can vouch for the accuracy of this template cause it worked for me for SBI Loans and the amount was correct till two decimal places

Last edited by ramki067 : 21st May 2007 at 12:22.
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