Which repayment method should I choose?

Default Method:

• Best if you want low monthly costs.
• You only pay the interest every month.
• The full loan amount is paid back at once later.

EMI Method:

• Best for clearing debt gradually.
• Monthly payment is higher but includes the loan itself.
• Loan is finished at the end of the period.

What is an EMI?

EMI stands for Equated Monthly Installment. It is a fixed amount you pay back every month until the loan is fully repaid. It includes both a portion of the loan amount and the interest.

What is the Reducing Balance Method?

In this method, interest is calculated only on the remaining loan amount each month. As you pay back the loan, your interest cost decreases over time.