EMI (Equated Monthly Installment)
Financial glossary definition
Definition
A fixed monthly payment made by a borrower to a lender. Each EMI covers both interest and principal repayment, with the ratio shifting over the loan term.
Try It Yourself
Loan / EMI Calculator
Calculate your Equated Monthly Installment for any type of loan.
Related Terms
Annual Percentage Rate (APR)
The yearly interest rate charged on a loan or earned on an investment, including fees and other cost…
Credit Score
A numerical rating (typically 300-850) that represents your creditworthiness based on your credit hi…
Debt-to-Income Ratio (DTI)
The percentage of your gross monthly income that goes toward debt payments. Lenders use DTI to asses…
Emergency Fund
A savings buffer of 3-6 months of living expenses kept in a liquid, easily accessible account. This …
Equity
The portion of an asset that you truly own — the difference between its market value and any outstan…
Escrow
An account held by a third party (usually your mortgage lender) that collects and pays property taxe…