Money Basics · Beginner
Loans, EMIs and credit scores
How EMIs are built, fixed versus floating rates, ways to cut interest, how credit scores work and how to use cards without traps.
What is inside
5 short lessons. Each ends with a quiz, so you know what you have learnt.
The essentials
- How a loan works
- Interest rate types
- Reducing the cost of a loan
- Credit scores
- Cards and borrowing smart
Key ideas you will take away
- EMI = principal + interest.
- Longer tenure lowers EMI, raises cost.
- Floating rates move with the benchmark.
- Fixed rates stay fixed for a period.
- Prepay early for most saving.
- No penalty on floating-rate individual loans.
Try a question
Q1. Which statement best describes “Principal”?
- A fixed rate stays the same for an agreed period, so your EMI is predictable even if market rates move.
- Prepayment is paying part or all of a loan ahead of schedule. It reduces the outstanding principal and the interest you pay.
- Revolving credit is credit you can use, repay and use again up to a limit, such as a credit card. Unpaid balances attract interest.
- The principal is the original amount you borrow. Interest is calculated on the outstanding principal.
Show the answer
D. Principal: The principal is the original amount you borrow. Interest is calculated on the outstanding principal.
Q2. Which statement best describes “Fixed rate”?
- Credit utilisation is the share of your credit limit that you are using. Keeping it low, often below 30%, helps your score.
- A fixed rate stays the same for an agreed period, so your EMI is predictable even if market rates move.
- A processing fee is a one-time charge by the lender when sanctioning a loan, usually a percentage of the loan amount.
- The interest rate is the cost of borrowing, shown as a yearly percentage of the outstanding loan.
Show the answer
B. Fixed rate: A fixed rate stays the same for an agreed period, so your EMI is predictable even if market rates move.
Frequently asked questions
Is the Loans, EMIs and credit scores course free?
Yes. Lessons, quizzes and practice are free. Sign in once with your mobile number or Google to start.
Who is the Loans, EMIs and credit scores course for?
It is a beginner-level course with 5 short lessons, written in plain language for beginners and for people who advise others on money.
Can I learn this in Hindi or Gujarati?
The app screens switch between English, Hindi and Gujarati at any time, and many quiz questions have translations. Lesson text is in English for now.
Do I get a certificate?
Yes. Pass the course exams to earn a certificate that anyone can verify online.
Is this investment advice?
No. It is education only. Speak to a qualified adviser before you act on your own money.
Related courses
UpperCrust Academy is independent study material from UpperCrust Wealth. It is not affiliated with NISM, SEBI or AMFI. For education only. Not investment advice. Always confirm the latest syllabus and rules on the official NISM website.