Tata Balloon Scheme: Repay your Loan Amount in a Flexible Manner

This scheme is for the customers who can periodically repay the large installment on their car loan. It allows customers to repay a fixed amount at periodic intervals, either it is 11, 1 €“ 1, 11 or 5, 1 – 1, 5. It means customer will pay 11 smaller installments and 1 larger installment. The whole calculation is like the structure of a balloon. If you will pay larger EMI first and then smaller EMI, you will earn profit. But if you will pay smaller first, then larger, you will pay more in the end as compared to the normal loan scheme.

 

An example is illustrated here: Normal Loan

contract details
0	Value		100000	scheme (normal/ss__)		NORMAL
margin received by us		0
finance amount		100000	security deposit		0
finance charges		6070	interest %		0.00%
agreement date		10-March-2015	compound/simple (C/S)		s
1	moratorium (in months)		0	frequency (M/Q/H/Y)		m
first bill date		10-March-2015
billing schedule	of instl	instl amount	of advance installment
0	12	8840	advance installment amount		0
11	0	0
12	0	0	ser chg receivable		0
12	0	0	dealer / m&m subvention receivable		0
12	0	0	rebate (%) p.a. payable		0%
12	0	0	dealer comm & incentive payable		0
12	instll & total receivable	12	106070	broker commission payable		0
1	installment frequency (m/b/q/h/y)		m	salesman commission payable		0
1	advance / arrears (a/r)		r
12	period (in months)		12	flat rate		6.88%
Interest Rate	11.03%	security deposit working
sr	install number	date	flow	sd	interest	interest

 

 

Balloon Loan: If you pay Smaller EMI first (11, 1 – 11, 1)

contract details
0	Value		100000	scheme (normal/ss__)		NORMAL
margin received by us		0
finance amount		100000	security deposit		0
finance charges		6883	interest %		0.00%
agreement date		10-March-2015	compound/simple (C/S)		s
1	moratorium (in months)		0	frequency (M/Q/H/Y)		m
first bill date		10-March-2015
billing schedule	of instl	instl amount	of advance installment
0	11	7553	advance installment amount		0
11	1	23800
12	0	0	ser chg receivablve		0
12	0	0	dealer / m&m subvention receivable		0
12	0	0	rebate (%) p.a. payable		0%
12	0	0	dealer comm & incentive payable		0
12	instll & total receivable	12	106883	broker commission payable		0
1	installment frequency (m/b/q/h/y)		m	salesman commission payable		0
1	advance / arrears (a/r)		r
12	period (in months)		12	flat rate		6.88%
Interest Rate	11.03%	security deposit working
sr	install number	date	flow	sd	interest	interest

 

 

 

 

 

 

 

If you pay Larger EMI first (1, 11 – 1, 11)

0	Value		100000	scheme (normal/ss__)		NORMAL
	margin received by us		0
	finance amount		100000	security deposit		0
	finance charges		5300	interest %		0.00%
	agreement date		10-March-2015	compound/simple (C/S)		s
1	moratorium (in months)		0	frequency (M/Q/H/Y)		m
	first bill date		10-March-2015
	billing schedule	of instl	instl amount	of advance installment
0	1	22800	advance installment amount		0
11	11	7500
12	0	0	ser chg receivablve		0
12	0	0	dealer / m&m subvention receivable		0
12	0	0	rebate (%) p.a. payable		0%
12	0	0	dealer comm & incentive payable		0
12	instll & total receivable	12	105300	broker commission payable		0
1	installment frequency (m/b/q/h/y)		m	salesman commission payable		0
1	advance / arrears (a/r)		r
12	period (in months)		12	flat rate		6.88%
	Interest Rate	11.03%	security deposit working
sr	install number	date	flow	sd	interest	interest

 

Difference is here. If you are availing a normal loan scheme, you will pay an EMI of 8840 rupees for 12 months. In the end, you will pay 1, 08,840 rupees as the receivable amount to the bank. If you are availing Tata Balloon Scheme and paying larger EMI first, you will pay 1, 05, 300 rupees as the receivable amount to the ban and you will save 3540 rupees.

With reference to the second calculation table, if you pay smaller 11 EMIs first and then 1 larger EMI, you will be in loss. You will pay more as compared to the normal scheme.

 

Key Points & Benefits:

1. Interest Rate will be 11.03% reducing.
2. Maximum saving by paying Larger EMI first. Your principal amount will be reduced if you will pay larger EMI first.
3. Secure Repayment.
4. This plan is beneficial specifically for Industrial and Agricultural profile customers.

If you are willing to avail Tata Balloon Scheme, choose the second format that is 1, 11 €“ 1, 11. Pay 1 larger EMI and then 11 smaller EMIs. Otherwise you will lose money by paying more as compared to the normal loan scheme.