IndusInd Bank

Whether it is saving for the future, covering emergency expenses, or making a big-ticket purchase, sound financial planning often revolves around making the right decisions at the right time. Taking a personal loan can be one of those decisions. A personal loan allows you to spread both planned and unforeseen expenses over a feasible period, eliminating the upfront cost burden of paying for a big-ticket expense.

But before you apply for a loan, you must understand the personal loan EMI (equated monthly instalment) obligation that comes with it. Depending on several factors, your EMI amount can range from manageable to unsustainable. To ensure financial stability and favourable loan terms, read on to learn about the top 7 factors that influence your EMIs.

1. Tenure

Your EMIs are directly tied to the loan tenure – the duration over which you will repay the loan. A longer tenure yields lower EMIs but calls for a higher total interest payment, while a shorter tenure leads to higher EMIs but a lower total interest payout. It’s crucial to balance the two to ensure that EMIs remain feasible but don’t increase your overall interest payout by a huge margin. You can use a personal loan EMI calculator to arrive at a comfortable tenure based on your financial situation.

2. Credit Score

A high credit score can be a gateway to securing a personal loan at affordable interest rates. Lenders perceive borrowers with good credit scores as safe and trustworthy, which often translates to lower interest rates and EMIs.

Pay bills on time, reduce existing debt, and avoid multiple open lines of credit to improve your score. Additionally, regularly monitor your credit report for inaccuracies and address any discrepancies promptly to maintain your credit rating.  

3. Monthly Income

Your income is a key factor that lenders consider when determining your loan eligibility and interest rates. A higher income can qualify you for potentially better interest rates, reducing your personal loan EMI burden. It\'s important to have a stable income to ensure you can manage the monthly repayments comfortably.

4. Debt

Lenders evaluate your existing debt to assess your ability to manage additional financial obligations. A high debt-to-income (DTI) ratio may result in a higher interest rate or a lower loan amount, both of which can affect your EMI. Also, applying for a loan with a high DTI can negatively impact your credit score. So, bring down your outstanding debt before applying for a personal loan to increase your chances of securing favourable loan terms.

5. Type of Interest Rate

The type of interest rate - fixed or floating - can affect your EMIs. A fixed interest rate ensures a steady EMI throughout the loan tenure, ensuring predictability in monthly outflows. On the other hand, a floating interest is tied to market fluctuations and can lead to varying EMI amounts.

While a fixed rate provides stability, a floating rate might offer lower interest rates if market conditions are favourable. So, choose an interest rate profile that aligns with your financial circumstances and risk tolerance. You can find a personal loan EMI calculator online and check your EMI obligations in different scenarios.

6. Reputation of Your Employer

Since personal loans are typically unsecured, lenders thoroughly scrutinise various factors of your financial profile to assess your creditworthiness, including your employment history and current employer. Borrowers employed by reputed organisations are often perceived as more financially solvent. As a result, lenders may provide relaxed lending terms, including lower interest rates and EMIs.

7. Relationship with the Lender

Having a positive, long-term relationship with your lender can be beneficial when applying for a personal loan. Lenders may offer better terms, including lower interest rates and EMIs to loyal customers with a good repayment history. It\'s advisable to maintain a good relationship with your lender, as it can provide leverage in negotiating better loan terms, ultimately resulting in more manageable personal loan EMIs.

Wrapping Up

Understanding the factors affecting your EMIs is key to making wise decisions with your personal loan. Eventually, the right type of interest rate, a high credit score, good debt management, and the correct tenure can help you manage your EMIs more easily. You could take the help of a personal loan EMI calculator online to figure out your outlay better and make the right choice. 

Travelling opens up fresh horizons and creates unforgettable memories. For avid travellers, the IndusInd Club Vistara Explorer credit card is a tool designed to enhance your travel experience. With a combination of privileges, convenience, and rewards, this credit card is tailored for the discerning, passionate traveller.  

The card offers a complimentary Club Vistara Gold membership, as a welcome benefit, which includes perks like priority check-in and extra baggage allowance. On top of that, new members receive a complimentary business class ticket voucher for Vistara flights and gift vouchers worth INR 25,000. 

Explore Club Vistara Credit Card Rewards

The Club Vistara Credit Card rewards are earned in the form of Club Vistara Points. The accrued points can be redeemed for flight bookings within the Vistara network. Cardholders are treated to various benefits that make every spend more rewarding. From offers on movie tickets to discounts on dining, and from no foreign currency markup to concierge services, the Club Vistara Credit Card is tailored to afford you the best-in-class privileges. Moreover, milestone spends will get you complimentary Business Class ticket vouchers with Vistara every time you spend INR 3 lakhs, up to a maximum of 5 vouchers annually.

Club Vistara Credit Card Benefits

Here are some of the exclusive benefits offered by the IndusInd Bank Club Vistara Credit Card:

A.    Priority Pass Programme 

Enjoy access to over 600 airport lounges globally with your Club Vistara Credit Card.

• Free Visits: Get up to 4 free visits to international lounges per quarter.

B. Lounge Access 

Unlock the door to comfort and luxury in lounges across the globe.

• Exclusive Entry: Access to select domestic and international lounges.

• Complimentary Benefits: Enjoy one free lounge visit every three months.

C. Travel Plus Programme 

The Travel Plus Programme is tailored to offer you a more comfortable and luxurious journey.

• Fee Waivers: Special waivers on lounge usage charges when you are abroad will add to your savings.

D. Travel Insurance 

The IndusInd Bank Club Vistara Explorer Credit Card offers the following insurance and protection benefits:

• Coverage up to INR 1,00,000 in case of lost baggage 

• Up to INR 25,000 for baggage delays.

• Up to INR 50,000 for a lost passport.

• Reimbursement of up to INR 25,000 for a lost ticket.

• INR 25,000 for a missed flight connection.

The Total Protect programme covers you for unauthorised transactions in case of loss/theft of card and offers an insurance cover up to 48 hours before you report the loss of your card. 

As part of the Club Vistara credit card benefits, you also get complimentary personal air accident insurance cover of up to 25 lakhs. 

E. Network Offers 

Visa Signature Cardholders can avail of a 20% discount on retail rates on Airport Fast Track immigration service at over 450 destinations worldwide, plus 15% off on airport transfer services in key cities around the world.

Your Perfect Travel Companion

The Club Vistara credit card is equipped with contactless technology, allowing for quick and secure transactions, crafting a seamless and enjoyable travel experience. With a variety of offers on travel, and lifestyle the IndusInd Bank Club Vistara Explorer credit card ensures that every journey you embark on is as rewarding as it is memorable.

For NRIs (Non-resident Indian) away from home, handling finances is a matter of precision and strategic planning. You may want to support your dependents in India or make an investment, all while earning in foreign currency. Fortunately, Non-resident External (NRE) accounts make this possible, offering specific functionalities and benefits tailored to the needs of those looking to park their overseas earnings in India.

As per the Reserve Bank of India’s (RBI) mandate, NRIs are not allowed to hold Indian bank accounts when residing abroad. Hence, it is mandatory for them to open an NRE bank account for managing funds in India.

What is an NRE Bank Account?

Short for Non-Residential External, NRE bank accounts are INR-denominated accounts that allow you to park your foreign currency earnings in India. At the time of deposit, the amount is converted into INR at the prevailing exchange rate.

With digital banking becoming a norm, you no longer have to visit an Indian bank branch to set up an account. Many tech-forward banks allow you to open an NRE account online, eliminating the usual problems associated with traditional banking.

Features and Benefits of NRE Bank Account

Here is why you should have an NRE savings account as an NRI:

●        Full Repatriation

Funds in NRE bank accounts are fully repatriable, which means you can move both the principal and interest amount to the country of residence. 

●        Tax-Free Interest

The interest earned on the funds in your NRE bank account is exempt from tax in India.

●        Joint Account Option

You can open a joint NRE bank account with another NRI or a resident Indian relative.

●        International Debit Card

Modern banks provide international debit cards for access to funds in your NRE account, adding a layer of convenience to your banking experience.

Difference between NRE and Other NRI Bank Accounts

Apart from NRE accounts, NRIs can also open NRO (Non-Resident Ordinary) and FCNR (Foreign Currency Non-Resident) accounts, which come with their own set of benefits. Here Is a comparison between the three to help you understand NRI accounts better.

In a Nutshell 

With tax benefits, ease of repatriation, and regular interest payments, the NRE savings account is a must-have financial tool for the NRIs. However, it is essential to have knowledge about all the NRI account options to ensure that your choice aligns with your goals.