EMI (Equated Monthly Installment) is a fixed monthly payment you make to repay a loan — home, car, personal, or “no cost EMI” purchases — over an agreed period, covering both principal and interest.
How It’s Calculated
Your EMI amount depends on three things:
- Principal — the amount you’re borrowing.
- Interest rate — the annual rate charged on the loan.
- Tenure — how many months/years you’re repaying over.
A longer tenure lowers your monthly EMI but increases the total interest you pay over the life of the loan. A shorter tenure raises the monthly amount but reduces total interest.
“No Cost EMI” — Worth Knowing
Many retailers advertise “no cost EMI” on purchases. It’s not always as free as it sounds — see what it can actually cost you before assuming there’s zero catch.
Try It Yourself
Use our free EMI Calculator to work out your exact monthly payment for a home, car, or personal loan based on principal, interest rate, and tenure.