BANKBAZAAR TIP CENTRAL
How is your EMI calculated?!
At a constant interest rate, EMI is constant month on month. The change happens in the way the principal and interest is added every month! In the initial years of loan repayment principal is lesser than the interest component of the EMI. In the latter years the reverse is true!
Malwa Gramin Bank – Two Wheeler loan
Malwa Gramin Bank is a project of State Bank of Patiala. The Bank was established on 27th Feb 1986. It is 100 % computerised on CBS platform. At present the Bank is operating in 371 villages with 53 branches and is operating in 5 Districts of Punjab.
The Bank has achieved tremendous growth in business during the year 2010-11. In bank’s deposits grew to the level of Rs. 563.84 crore with a net increase of Rs. 52.11 crore over 2009-10. The advances of the Bank grew to the tune of Rs. 471.62 crore, a net increase of Rs. 61.18 crore over 2009-10. The bank is mainly involved in offering help to the farmers in the rural areas; it offers home loan, personal loan, festival loans etc.
Purpose – The main purpose of the scheme is to offer loan for the purchase of new two wheelers.
Eligibility – All existing agriculture borrowers having good track record with bank
Loan Limit – 75% of the Value of Vehicle, Maximum of 25000/-
Margin – 25 % of the value of vehicle
Security – Charge (hypothecation) on vehicle by the Bank, Letter of Guarantee from third Party.
Interest – 13% per annum
Repayment – 10 equal half yearly installments.