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Sunday, 12 April 2020

Loan Amortization Schedule

A loan is an excellent financial  vehicle to power your ventures in the future or even fix up your urgent requirements but as there is a very well known saying that goes as follows:

Image Credit: AZ Quotes

"There's no such thing as a free lunch" you will have to pay it today or tomorrow. By taking up credit all you do is buy some time unit you are able to reimburse it.

Loan Amortization is the process of paying off loans/credits that you have borrowed and it is extremely important that you know how what charges and fees will be applicable to the amount you have borrowed and what term will you need to pay it for.

For a better understanding of the loan amount and the repayment schedule, most lenders offer a loan amortization schedule to its borrowers. As there are many who automatically provide it when you borrow money, there are few who won't share this unless you ask them for it.

I would highly recommend having this amortization schedule as it'll help you plan for finances and also have an actual idea of how much total interest you are paying and what all fees and taxes are included. This also helps you in understanding what tax benefits you can claim.

When you are planning to take a loan, you can prepare an amortization schedule yourself and it is very well explained in the below video:

Thanks for reading

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