EMI

EMI, or Equated Monthly Installment, is a fixed amount paid regularly—usually every month—when borrowing money, such as a loan or mortgage. It includes both the principal amount (the original money borrowed) and the interest (the cost of borrowing). The EMI amount remains the same throughout the repayment period, making it easier to plan your finances. Over time, a larger portion of each EMI pays off interest initially, with the remaining reducing the principal. EMI helps spread out the cost of a large purchase or loan into manageable, predictable payments.