Question 1

What is EMI?

Accepted Answer

EMI (Equated Monthly Installment) is a fixed monthly payment towards a loan, consisting of principal and interest components.

Question 2

How is EMI calculated?

Accepted Answer

EMI = (Principal × Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^-Number of Months)

Question 3

How can I reduce my EMI?

Accepted Answer

You can reduce EMI by increasing the loan tenure (more months), increasing the down payment, or refinancing at a lower interest rate.

Question 4

What's the difference between EMI and interest?

Accepted Answer

EMI is the total monthly payment (principal + interest), while interest is only the cost charged by the lender on the borrowed amount.

EMI / Loan Calculator

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