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What is the Full Form of EMI ?

EMI - Equated Monthly Installment


Equated monthly installments are mostly calculated, when opting for a loan. It specifies the number of months you have to pay the sum of "interest and principal" each month, so that the loan is paid off completely. While repaying a loan, a lender or a borrower specifies a particular date on which installment of EMI will be given from borrower to lender.

For Example :
If you buy a house using a home loan of some money, which you need to return in the duration of 20 years (240 months). You lend this money from a bank, the installment will be paid to the bank, suppose on the 15th of every month. The EMI for the same will be calculated by combining 2 things : Principal and Loan.

Comments  

#1 HEMANTA CHETRY 2014-01-24 11:31
How can we calculate emi amount plz give me in details
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#2 Ambika Konka 2014-02-26 08:32
really very good..
Thanks
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#3 admin 2014-02-28 15:59
The formula to calculate EMI is really cryptic. You may find a lot of good EMI calculators online. just google it
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#4 Rahul 2014-07-07 12:09
Asked in SBI PO exam on 6/7/2014.
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