Question 1

What is an EMI?

Accepted Answer

EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month, paying off both principal and interest over a chosen tenure.

Question 2

How is EMI calculated?

Accepted Answer

EMI is calculated using the formula: EMI = [P x R x (1+R)^N] / [(1+R)^N-1], where P is the principal loan amount, R is the monthly interest rate (annual rate divided by 12), and N is the total number of monthly installments.

Question 3

What documents are required for a loan application?

Accepted Answer

Common documents include: Identity proof (Aadhaar, PAN, Passport), Address proof, Income proof (salary slips, ITR, bank statements for 6-12 months), Employment/Business proof, and Property documents for secured loans.

Question 4

What is a CIBIL score?

Accepted Answer

A CIBIL score is a 3-digit numeric summary ranging from 300 to 900 that represents an individual creditworthiness. A score of 750 and above is considered ideal for quick loan approvals at favorable interest rates.

Question 5

How can I improve my CIBIL score?

Accepted Answer

To improve your CIBIL score: Pay all EMIs and credit card dues on time, keep credit card utilization below 30%, avoid multiple simultaneous loan inquiries, maintain healthy older credit accounts, and periodically check your report for discrepancies.

Question 6

Can I get a loan with a low CIBIL score?

Accepted Answer

Yes, options include applying through NBFCs, offering higher collateral via secured loans (LAP), adding a creditworthy co-applicant, or working with advisors like Javi Finanz to structure the application properly.

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