What is the full form of EMI:

EMI represents Equated Monthly Installment.

EMI is the most common term used in todays world. It is a short form for Equated Monthly Installments. EMIs are calculated when a person opts for a loan.

EMI tells about the number of months for which a person needs to pay the sum of principal and interest every month so that the loan is paid completely. Usually the date of repaying the loan is fixed by the lender.

There are different types of loans available, like housing loan, education loan, vehicle loan, personal loan etc. When a person borrows a loan, there are multiple components which are involved in calculating the EMI. The amount of loan, the number of years in which the customer will repay it back, the locking period, or the period for which the customer will not be able to pay the loan, and will only repay the interest, the date on which the installment will be paid on every month. All these components play a very important role in calculating Equated Monthly Installment.