Our needs are changing every day. Gadgets, lifestyle objects and vehicles are now slowly becoming a part of our daily needs. To meet with these requirements we need to choose the mode of payment wisely depending on our income, affordability, price of the product and our other liabilities. Various fund management and payment methods such as SIP and EMI have come up that makes expensive goods affordable. With EMI calculators being available online we can now easily enter our required amount and suitable time through which we shall repay and voila we know much we need to pay every month sitting at home.
WHAT IS EMI?
Equated Monthly Instalments (EMI) is a method to repay a loan taken by a person from a bank. It is a fixed amount that a person pays to the bank each month to pay off the principal amount borrowed and also the interest acquired on it. EMI facilities are available on all forms of loans such as car, house, education etc. You can also use emi calculators to facilitate emi payments.
WHAT IS SIP?
Systematic Investment Plan (SIP) is used for a mutual fund scheme where you are allowed to invest small amounts over a period of time rather than paying a lump sum amount once. The amount payable at a SIP can be as less as Rs.500.
EMI VS SIP
The utility of EMI and SIP are case sensitive. They both have their advantages and dis advantages. While EMI increases the net amount paid by you for purchasing a product, SIP increases the time needed for you to be able to buy it. A SIP is useful when we want to develop a fund and have future plans to invest them. But for immediate needs EMI is a better solution.
EMI gives you the option of purchasing in the present instance. Situations like expenditure for your education cannot wait for you to slowly grow your fund. This has to be done immediately before you pass the eligible age. Here taking an education loan is a better option. Loan calculators help the process of determining monthly EMI’s by dividing the principle amount and interest acquired by the time over which it shall be repaid. But if you think from another perspective a student starting a career is burdened with the yoke of a pending amount. Here as a parent, you can start saving early in small amounts for your child’s future and education through SIP.
It is intelligent to pay EMI for creating an asset such as building a house rather than for buying a product whose price depreciates over the period through which you pay the EMI such as a car, laptops, furniture etc.
WHAT IS EMI?
Equated Monthly Instalments (EMI) is a method to repay a loan taken by a person from a bank. It is a fixed amount that a person pays to the bank each month to pay off the principal amount borrowed and also the interest acquired on it. EMI facilities are available on all forms of loans such as car, house, education etc. You can also use emi calculators to facilitate emi payments.
WHAT IS SIP?
Systematic Investment Plan (SIP) is used for a mutual fund scheme where you are allowed to invest small amounts over a period of time rather than paying a lump sum amount once. The amount payable at a SIP can be as less as Rs.500.
EMI VS SIP
The utility of EMI and SIP are case sensitive. They both have their advantages and dis advantages. While EMI increases the net amount paid by you for purchasing a product, SIP increases the time needed for you to be able to buy it. A SIP is useful when we want to develop a fund and have future plans to invest them. But for immediate needs EMI is a better solution.
EMI gives you the option of purchasing in the present instance. Situations like expenditure for your education cannot wait for you to slowly grow your fund. This has to be done immediately before you pass the eligible age. Here taking an education loan is a better option. Loan calculators help the process of determining monthly EMI’s by dividing the principle amount and interest acquired by the time over which it shall be repaid. But if you think from another perspective a student starting a career is burdened with the yoke of a pending amount. Here as a parent, you can start saving early in small amounts for your child’s future and education through SIP.
It is intelligent to pay EMI for creating an asset such as building a house rather than for buying a product whose price depreciates over the period through which you pay the EMI such as a car, laptops, furniture etc.
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