What is an EMI?
An Equated Monthly Installment is the fixed monthly payment used for home loans, car loans, and personal loans. Each EMI includes both principal and interest, which makes it useful for comparing lenders and checking whether a loan fits your monthly budget.
What Changes Your EMI
Your EMI mainly depends on the loan amount, annual interest rate, and tenure. A longer tenure lowers the monthly EMI but increases total interest paid, while a shorter tenure raises the EMI and reduces the total borrowing cost.