TATA Capital Step Down Flexi EMI Plan for Personal Loans

  • Loan ID : N038
  • 106
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What is a Step-Down EMI Plan ?

Step Down Loans - A Step Down Loan allows you to take a personal loan where you pay higher EMIs initially and the amount decreases after a defined period. This helps you to reduce your interest burden substantially by paying a higher principal amount and at the same time enjoy the flexibility of the money flow. Step down loans are ideal for people with high disposable income.

Is it suitable for you ?

Step down loans are suitable for people with high disposable income on a month on month basis but might face a contingency for which they need a loan. By opting for a step-down loan one can avail higher personal loan eligibility and can start paying higher EMIs, which consists of payments of higher principal component. After a fixed time the EMI decreases and the balance loan is paid off. The latter part of EMIs consists of a higher percentage of Principal, where the interest burden is substantially reduced.

For example: Saurabh, a top executive required a personal loan to invest in a startup, he was excited about, but did not have immediate cash to invest at one go. He wanted to pay lower interest, as he anticipated more disposable income in the coming months so he could pay higher EMIs. Saurabh opted for a step-down loan where he could pay a higher EMI initially so that principal payment was more and the interest burden was reduced substantially. This helped him invest money in one go whereas saving on the interest to be paid.

Check your EMI using the Personal Loan EMI Calculator.

Advantages of a Step-Down EMI Plan

  • Flexibility of choosing personal loan amount
  • Pay higher EMIs in the beginning
  • Lower EMIs at the end of personal loan term
  • Reduces interest burden substantially
  • Ideal for people with high disposable income
  • Helps in finance management
  • Higher disposable income at the end of the tenure, as EMI burden is reduced

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