EMI Full Form: The Full form of EMI is Equated Monthly Installment. Which means the amount of money that is paid on a principal and interest on the principal for a small amount of money every month.
When repaying a loan or buying a similar one, who pays in monthly installments. It is called EMI. The entire loan amount is called the principal. And the additional amount that is taken on the principal. It is called interest.
Today everyone needs a loan. You get all the money together in a loan. But when you have to repay the loan. So you cannot repay the loan together. To make this easy, the bank gives you the option of EMI ( EMI Full Form: Equated Monthly Installment). Through which you can repay the loan in easy installments every month.
When you pay EMI ( EMI Full Form: Equated Monthly Installment), apart from your principal, some interest is also included. That is, the EMI (Equated Monthly Installment) contains interest.
how EMI works
The EMI you have taken. The EMI is distributed according to time. With this, the entire loan amount and interest has also been divided according to the time period and added it in installments.
EX – Suppose you have taken a loan of 1 lakh for 12 months. The bank is charging a loan of 10% on a loan. According to this, your EMI will be 9166.66.
Ways to pay EMI ( EMI Full Form: Equated Monthly Installment)
There are two ways to pay EMI.
1. Online 2. The offline
online payment method of EMI
In the online mode of EMI payment, you have to give a signed check or credit card detail while taking a loan. Every month the amount of EMI is deducted from your account.
offline payment method of EMI
In offline mode, you have to go to the bank and pay the installments.