About Equated Monthly Installment (EMI)
An Equated Monthly Installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.
In the initial repayment months, a larger portion of each EMI goes toward paying interest. As the loan matures and the outstanding principal decreases, a higher portion of each payment goes directly toward paying down principal.
