Not a bad Article. One key point I am afraid has not been discussed at length. The EAI has a big role to play in determining the EMI. Most Financiers do not give the Benefit of working the Interest Rate on the "Diminishing Balance" on a Monthly Basis. In most cases it is on An Annual Basis which is detrimental to the Borrower.
If you take a Recurring Deposit with a Bank for 60 months OR you take a Loan with the same Bank for 60 equated monthly payments in both the cases the Interest is calculated on a Monthly Basis.
Most guys who want a loan are ever willing to sign on dotted lines..........
