What is broken period interest?

What is broken period interest?

Most banks and financial lenders levy a certain amount of interest before the actual EMIs start; this is called as the “broken period interest”. This is the interest in the gap between the actual disbursement of the first installment of the loan and the start of the EMI. Processing & Administrative Fees.

What is the meaning of broken period loan interest due in LIC?

The concept of the Broken Period Interest or the accrued interest arises as interest on bonds is received after certain fixed intervals of time to the holder who enjoys the ownership of the security at that point of time.

What is interest period?

Related Content. Period of time chosen by a borrower under a loan agreement during which a floating rate of interest, such as LIBOR, is fixed for certain of the borrower’s loans.

What is indicative rate of interest?

Indicative Rate means the rate, if any, which the Agent has provided to the Borrower on the date that the Borrower provides the Agent with a Notice of Borrowing, as being the Base Rate or Adjusted London Interbank Offered Rate, effective on the date of such Notice of Borrowing.

What is broken period EC?

30 March 2012 An encumbrance certificate for a period of covering 4 months from the date of creation of equitable mortgage from the date of last encumbrance certificate is called an Broken period EC.

How do you calculate effective period?

First, divide the nominal rate by the number of compounding periods. The result is the periodic rate. Now add this number to 1 and take the sum by the power of the number of compounding interest rates. Subtract 1 from the product to get the effective interest rate.

How do you calculate period in compound interest?

With monthly compounding, for example, the stated annual interest rate is divided by 12 to find the periodic (monthly) rate, and the number of years is multiplied by 12 to determine the number of (monthly) periods.

What are indicative rates?

Indicative exchange rates, are floating exchange rates that not locked/fixed at the time of making of the transfer/transaction. If you choose indicative exchange rates, you will not know the exact amount of money that will be received because the exchange rate may vary on the day the money is transferred.

What’s the meaning of indicative rate?

An indicative quote is a reasonable estimate of a currency’s current market price that is provided by a market maker to an investor upon request. However, this rate is not able to be dealt on, hence the word indicative.

What is the meaning of EC in land registration?

Encumbrance Certificate
An Encumbrance Certificate or EC is a certificate of assurance that the property in question is free from any legal or monetary liability such as a mortgage or an uncleared loan.

Is EC required for home loan?

An Encumbrance Certificate (EC) is a crucial document used as evidence of free title/possession of a property. The document is needed while purchasing or selling a property or when applying for a home loan or loan against property to confirm that the particular property is free of any economic or legal liabilities.

What is meant by broken period interest?

There is a certain time gap between the time of actual disbursal of the first instalment of the loan and the time of the commencement of EMIs. Thus, interest levied by all financiers for this period is generally known as the “broken period interest.

What is indindicative period interest?

Indicative period interest is also known as broken period interest rate or gap rate. There is a certain time gap between the time of actual disbursal of the first instalment of the loan and the time of the commencement of EMIs.

Is the assessee eligible for broken period interest on securities purchased?

However, the Assessing Officer held that the assessee was not eligible for broken period interest in respect of securities purchased during the previous year by the bank for the reason that such expenditure was laid out as capital outlay.

What are the broken period charges for home loan in India?

Suppose You got the loan at 29th MAY so broken period charges will be around 100 rupees (29th MAY , 30th MAY and 31st MAY ).And your EMI for that loan would get start at JUL 1st. They usually give one month period as interval. Scenario 2) .