A Financial EMI (Equated Monthly Installment) is a fixed monthly payment comprising principal amount and interest, repaying a housing loan. The formula for EMI is: EMI = [P * r * (1 + r)^n] / [(1 + r)^n 1], where P is the loan amount, r is the monthly interest rate, and n is the loan tenure in months. For instance, a ?10,00,000 loan with a 5% annual interest rate for 20 years has a monthly EMI of approximately ?6,.

What exactly is EMI?

EMI signifies Equated Monthly Fees. It is a fixed percentage number created by a borrower to a loan provider within a designated day for every calendar month. EMIs are used to pay the focus and you will prominent count out-of that loan, making sure over a certain few years, the loan was repaid entirely.

In the context of home financing, brand new EMI ‘s the payment per month that a borrower produces so you’re able to pay-off our home loan. [Read more…]