EMI stands for Equated Monthly Installment. It is a fixed payment amount made by a borrower to a lender at a specified date each calendar month.
Enter the principal loan amount, the annual interest rate offered by the bank, and the loan tenure in years. Click "Calculate EMI" to see the breakdown.
The formula is EMI = [P x R x (1+R)^N]/[(1+R)^N-1], where P is principal, R is monthly interest rate, and N is tenure in months.
Yes, a longer tenure reduces your monthly EMI but significantly increases the total interest amount paid over the life of the loan.
Most banks allow prepayment. Prepaying part of your loan reduces the principal amount, which in turn reduces the total interest payable.