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What Does The Amortization Table In An EMI Calculator Mean?

The amortization table is a schedule of the repayments that you will make over the course of time. This is a detailed understanding of the EMIs, the principal amount repayment and the interest amount repayments for your loan. Let’s understand this concept in thorough detail.

What is an Amortization table?

This is a tabular view of your EMIs over the course of the home loan tenure. In simple terms, every EMI is divided into two parts – the principal and the interest amount. So, you can see how much of each month’s EMI is used for the principal as well as the interest amount. While calculating the monthly home loan EMIs, you can find the amortization table displayed in certain EMI calculators.

What is the main use of the Amortization table?

All housing loan EMI calculators in India do not host this table; although, the advanced ones do. The main use of this table is for the home loan calculations so that you understand the division of the principal amount and the interest amount over time. Most banks and housing finance companies create the repayment schedule that show the repayment of the principal amount over the course of time, while repaying small portions of the interest. Then, you will complete the term by repaying the interest, while paying the pending portion of the principal amount.

You can foresee how you will repay the loan on a month-to-month basis, which is a very useful insight into your financial life. It is, actually, more important as these amounts vary over time.

What are the other advantages of the table?

Since these amounts are also part of your tax rebate, you can use these numbers to calculate the tax benefit you can enjoy annually. Though you will need to consult a tax consultant, the tax rebate applicable on the principal amount and the interest is different. This table will be pretty useful, for sure.

The truth is; this table represents the standard repayment option. If you do not find it comfortable, there are several choices available today. So, take a look at your typical monthly expenses and pending savings over the years to find the most suitable repayment option. Though these details are not shown in the table, you can use a home loan calculator to identify any potential changes that you need to make.

So, use all these features of the perfect home loan EMI calculator and explore them to their fullest value before availing a housing loan.

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Bespoke software advantages and disadvantages

By making a decision to go forward with a bespoke software solution for your business, you can be giving your company a platform to grow, develop, and expand. However, many companies don’t invest in custom-made software, tailored for their specific needs and instead settle for off-the-shelf products.

Let’s find out whether or not they are the making the right decision.

Disadvantages Of Bespoke Software
In our experience, there are two main reasons that companies don’t always choose a custom software solution:

1) Initial Costs

The up-front cost is usually the biggest disadvantage associated with custom-tailored programs. Bespoke software projects often cost more than off-the-shelf solutions, due to the amount of time and effort needed to create masterpieces. Eventually, however, the benefits such software gives you can bring you much more money than you spend on it.

2) Waiting Time

Since bespoke software is created from scratch, you will need to wait some time for your developers to build it. However, as it is the perfect fit for your business, it is (in our opinion) worth the wait.

Advantages Of Bespoke Software
There are, on the other hand, numerous advantages of having your own bespoke software developed.

At Make IT Simple, our software developers have created programs that solve business problems, that improve efficiency and productivity, that improve business intelligence and performance measurement, and that help get a competitive edge. In many cases, the software we have developed has become the product for our clients, which is simply not possible with an off-the-shelf solution.

Here’s why many businesses choose to go with this option:

1) Individually Crafted Solution

Bespoke software is similar to a custom-tailored suit. It fits your parameters perfectly. Meanwhile, the suit you buy at a discount shop usually needs some adjustments to look good. The same is true for off-the-shelf products. They are an all-purpose solution, which can be used by many companies, and often you end up trying to change your business to fit the technology rather than fitting the technology to your business.

2) Return On Investment

While bespoke software development involves investment, you can often start experiencing financial benefits almost immediately. When it is well planned and well built, the time/human resource savings can quickly pay for themselves, as can the competitive edge you can gain from developing better systems than your rivals. Bespoke software also forms part of your company’s IP and can add value to the business.

3) Better Security

Common off-the-shelf products have one huge disadvantage: Hackers know all the ins and outs of such programs and often take advantage of the weaknesses. That’s why you can’t feel 100% secure when using such software. Meanwhile, custom-made programs are only exploited by your business, cutting the chances of hacks and break-ins to a minimum. It also reduces the incentive for hacking – with an off-the-shelf product, if you are successful in hacking one system you can potentially access thousands more.

4) Scalability

If your company grows or expands to cover other market sectors, the off-the-shelf solution may not cope – and you have little or no input in the way the system develops over time. Bespoke software can develop and grow together with your business. Make IT Simple offers lifetime product support to help you change the program whenever needed.

5) Time-Saving

Jim Rohn once said “Time is more valuable than money. You can get more money but you can’t get more time.” We create products that save you an impressive amount of time on software integration and employee training as well as automating and speeding up critical business processes.

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Interest Rates Comparison To Find The Right Fixed Deposits

Traditionally speaking, most investors considered identifying the right fixed deposit to be as easy as visiting a bank and opening an account. With the current economy, most banks compete with each other for your money. So, they offer the best interest rates they can. It won’t be as easy as visiting a third party website to check out all the interest rates though. If you do visit these websites, you can find the bank that offers the highest interest rate on the fixed deposit schemes . There are a few other considerations too, that are important for savvy investors.

Organization

There are several organizations that offer fixed deposits today. All nationalized, cooperative, private and foreign banks, select mutual funds, select companies and the Indian postal service offer term deposits. So, you should evaluate all these organizations to select the best one possible. Company FDs have higher returns and an even higher risk, just like cooperative bank FDs. Nationalized banks and the Indian Post offer higher safety and lower returns. Hence, evaluate all these options based on your investment agenda.

Investment agenda

For investors looking for a high yield, FDs are not the ideal choice. You must invest funds as per your agenda so as to choose the right investment tool, organization and amount. The most popular reasons for investing in low risk and low gain tools like the FD are:

• To earn interest
• To maintain liquid assets
• To have spare cash for an emergency like an accident or a surgery
• To diversify the investments
• To invest for a certain long term objective such as a gift for a minor

Specifications:

Based on your agenda, you can narrow down the specifics to look out for in the fixed deposit options. For example: If you want to save some extra cash for an emergency, you can read up on the premature and partial withdrawal penalty. If you want to diversify your investments, then you won’t invest the entire sum in one organization. Company FDs and fixed deposits in banks can make a great choice. You can’t invest anything more than 1 lakh rupees in any bank, though, as this is the maximum limit of insurance on these term deposits.

If you have chosen your specifications well, you can end up with the best possible investment. While this process may seem a bit complicated when compared to just choosing the highest interest, the result can certainly be a useful investment for you.

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