Loans
EMI
pronounced: [Eee-Eem-Eye]
Equated Monthly Installment is a fixed payment amount made by a borrower to a lender on a specified date each month.
EMI includes both principal and interest components.
Key Facts
| Fact | Value |
|---|---|
| Interest Compounding | Monthly |
Example
A ₹5 lakh personal loan at 10% p.a. for 3 years has an EMI of ₹16,607/month. Total payment = ₹5,97,852, of which ₹97,852 is interest.
Frequently Asked Questions
Related Terms
Home Loan
Personal Loan
Car Loan
Last updated: 21 May 2026