Equated Monthly Installment - Fixed payment amount made by a borrower to a lender at a specified date each calendar month.
Detailed Explanation
EMI or Equated Monthly Installment is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full.
Example
"If you take a car loan of ₹5,00,000 at 9% interest for 5 years, your EMI would be approximately ₹10,380 per month."