EMI
A fixed monthly payment that repays a loan over its term.
What is EMI?
EMI (equated monthly installment) is the fixed amount a borrower pays each month to repay a loan by the end of its term. Each payment covers both interest on the outstanding balance and part of the principal, with the interest share shrinking and the principal share growing over time. The EMI depends on the loan amount, the interest rate, and the number of months in the term.