Team-BHP - View Single Post - ARTICLE: How to get the lowest EMI & the best Finance Deal

gt_bhp · 23rd January 2008, 10:48

I'd like to understand the difference between an advance EMI and EMI in arrears. Which of these is advantageous to the user ?
Ex: For a loan of 5 Lakhs@9.5% for 36 months, I've been quoted EMI values of 15900 (1 Adv EMI) and 16030(without advance EMI).
From the various online calculators,I get the rate to be 9.56% when EMI is 16030. But I'm not able to understand how the EMI is calculated when 1 EMI is paid in advance. Would be of great help if someone can explain this to me.

23rd January 2008, 10:48	#80 (permalink)
gt_bhp BHPian Join Date: Feb 2006 Location: Bangalore Posts: 66	I'd like to understand the difference between an advance EMI and EMI in arrears. Which of these is advantageous to the user ? Ex: For a loan of 5 Lakhs@9.5% for 36 months, I've been quoted EMI values of 15900 (1 Adv EMI) and 16030(without advance EMI). From the various online calculators,I get the rate to be 9.56% when EMI is 16030. But I'm not able to understand how the EMI is calculated when 1 EMI is paid in advance. Would be of great help if someone can explain this to me.