An Equated Monthly Instalment ( EMI ) is a fixed monthly payment that combines both principal and interest that you pay over the loan tenure. ‘Itna samjhe?’. Now, the standard EMI formula is: EMI =P×r× (1+r)N/ (1+r)N−1 . For example, you take a personal loan of ₹3,00,000 at an annual interest rate of 12% for 3 years (36 months). First, break it down: What is EMI ? Understand the EMI full form , meaning, and how it works. Learn how to calculate EMI for loans using simple methods. The EMI full form signifies that the EMI payments are uniform monthly payments. EMI is the fixed monthly instalment you pay until your loan is fully repaid with interest. In banking, an EMI refers to the monthly payment that a borrower makes to repay a loan over a set period . Each EMI consists of two parts: the principal amount and the interest on the loan.
