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FINANCIAL EDUCATION
LEARNING VAULT
Know Your Banking - FAQ on Bank Products and Procedures
Kindly click on the Questions below to view the Answer
1. What are
fixed interest rate loans and floating interest rate loans and what is their
impact in a borrowing decision?
2. What is
an EMI (Equated Monthly Installment) and how it is calculated?
3. What is
an APR (Annual Percentage Rate)? Why is APR important for a borrowing
decision?
4. My friend
recommends that I should go for a longer term EMI, in which case my
repayment burden will be less. His
reasoning is that longer EMI will lead to lower
installment amount and hence less
burdensome?
5. What is
the difference between simple interest and compound interest and in the case
of a deposit of Rs.1,000/- made with a bank
for 3 years at 10%, how interest would be
calculated?
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