EMI is a predetermined payment amount given to the lender by a borrower at a particular date each calendar month. EMI is an equated monthly payment. Equated monthly instalments apply to both interest and capital every month in order to fully reimburse the loan over a set number of years.
In layman's terms, a credit bureau is an organisation that collects information on a person's credit, such as borrowings, bill payments, pending debts, and so on. This information may subsequently be shared with credit information companies, which follow the protocol of evaluating an individual's credit statement and reports for loan approval, credit card approval, and so on.
A loan is a credit given by a financial institution (lender) to a borrower to meet his financial obligation or wants. It benefits the borrower by ensuring his financial liability is fulfilled, while ensuring the lender earns money on the principal loaned by charging a certain interest upon it, depending on the class of loan taken.
When you ask for a loan, your credit score is the most important aspect in determining the eligibility of your loan. CIBIL, which is owned by TransUnion, is one of the RBI-approved credit rating organizations in charge of calculating credit scores for individuals and businesses based on information provided by banks and lending institutions.
Subscribe to our newsletter