What are the EMI options available for dairy farmers on two-wheeler loans?

When dairy farmers apply for a two-wheeler loan, the Equated Monthly Instalment (EMI) options are a crucial factor to consider. The EMI is the amount paid monthly towards the loan repayment, which varies based on different factors. Key points to consider for dairy farmers when selecting EMI options:

• Loan Tenure: The tenure typically ranges from 12 months to 36 months. A shorter tenure results in higher EMI but reduced interest costs, while a longer tenure offers lower monthly EMI but may lead to higher total interest.
• Down Payment: A larger down payment reduces the loan amount, lowering the EMI. Dairy farmers can consider making a substantial down payment if their finances allow, easing their monthly burden.
• Interest Rate: The interest rate, which may be based on the applicant’s credit profile, will directly impact the EMI amount. Dairy farmers should inquire about the rate, as it will affect the total cost of the loan.
• Loan Amount: The EMI is directly proportional to the loan amount. The higher the loan amount, the higher the EMI, so it is essential to consider the loan amount for the monthly income.

Financial institutions typically offer tools like EMI calculators to help dairy farmers estimate their monthly payments based on the loan amount, tenure, and interest rate. Note: EMI options can differ across various financial institutions.