From the previous page on "Effect of Interest on Loan Period" you might have acquired insight on the importance of early closure of Loan.

Bankers will be happy to extend the loan period consequent on increase in interest rate.By extending the loan period,keeping the EMI constant they will earn more interest income on the loan.

But the borrower will have to pay for quite a longer period and to pay heavy amount towards interest.Borrower can avoid the inconvenience of extended repayment period by opting for revised EMI corresponing to the revised interest rate.This is quite advantageous to the borrower.

So whenever you receive a letter from your Banker extending the Loan Period ,make your informed decision whether to accept or to opt for increasing the EMI and to keep the loan repayment period unaltered.

Please see the table given below to have some idea on the "Interest and EMI".

Use this EMI Calculator for deciding your option for Loan repayment