EMI stands for Equated monthly installment. It is a term related to Financial , Useful Terms and Definitions which we use in daily life but we do not know their full name, Here’s a list of important abbreviations that you should know.
|Equated monthly installment
What is full form of EMI?
The full form of EMI is the Equated monthly installment. Equated Monthly Installment (EMI) is defined by Investopedia as “a fixed amount paid by a borrower to a lender on a specified date in each calendar month.
Equated monthly installments are used to pay both interest and principal each month.” This is done so that over a specified number of years, the loan is fully repaid with interest.
Here you learn the full name and complete information of Equated monthly installment, if you have questions and answers related to EMI, then tell us your thoughts in the comment, know the complete meaning of EMI in this article.
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The mathematical formula to calculate EMI is: EMI = P × R × (1 + R) N / ((1 + R) N-1) where P = loan amount, R = interest rate, N = number of months tenure . Higher the loan amount or interest rate, higher will be the EMI payment and vice versa.
Is EMI scheme good or bad? Though a good EMI plan is easy on your wallet, you should try to avoid it as the first option. You might not only be spending more than the actual value of the product, but spending separately first and then relying on EMI payments is not healthy for your finances.
An Equated Monthly Installment (EMI) is a fixed payment amount paid by a borrower to a lender on a specified date in each calendar month. Equated monthly installments are applied each month on both the interest and the principal amount to pay off the loan in full over a specified number of years.
1887-1919. In 1887, Emil Berliner invented his ‘gramophone’ method of recording and reproducing sound using discs, a process that would revolutionize the way music is heard and experienced. The history of EMI begins with one of the companies that Berliner created: the Gramophone Company in London.
The Equated Monthly Installment (or EMI) comprises the principal portion of the loan amount plus interest. Hence, EMI = Principal Amount + Interest paid on the personal loan.