The repayment of loan is treated as Amortisation. Amortization is a table with details of interest payment and periodic principal of a loan along with the amount outstanding after each payment and the decrease of loan balance till zero.
1. Rate of Interest differs according to the profile of the customer i.e. company name, salary.
2. Loan amount varies from 50,000 to 35,00,000
3. Processing Fees is the charges which bank incur while processing of Loan. These fees range from 1% to 4% of the loan amount.
4. Personal loan has a specific repayment schedule 1 to 5 years
5. Equated monthly Installment (EMI) comprise of Principal and Interest it is a fixed payment owed each month to repay the Loan