EMI: Equated Monthly Installment
EMI stands for Equated Monthly Installment. it’sa hard and fast payment amount which a borrower pays to a moneylender at a selected date of every month for a selected period of your time. Emi consists of a principal component and interest component that a borrower is meant to pay to lender over a selected number of years to pay off the loan fully. So, it’s an unequal combination of principal and rate. If you’rereaching to take loan from a bank, you need to understand how banks see the EMI soyou’ll evaluate various loan options of various banks and chose one as per your financial constraints.