What is EMI? Full form of EMI | How to Calculate EMI
In this era of inflation, people need to take loans to meet financial expenses like building a house, buying a bike, buying a car, getting married, and doing any kind of big work. Because to do such work, you can get a lot of capital from the bank itself to repay the regular installments at minimum interest. The amount you get from the bank is repaid through EMI only.
If you take a home loan, car loan, business loan, or any other loan, then you get many benefits, as well as the facility of payment through EMI. In this era of rising inflation, the EMI option helps you live stress-free. Because of this you easily fulfill your needs without feeling any burden. Before taking a loan from the bank, you should get information about the EMI of that loan. In this post, you are being told about some important information related to what is EMI, the full form of EMI, and how to calculate EMI.
EMI Full Form
EMI is called ‘Equated Monthly Installment’ in English language and ‘Equated Monthly Installment’ in the Hindi language, which is to be paid according to your monthly, in many rules this quarter is also taken.
What is EMI
When a person needs more money to do his work, he chooses the option of a loan from the bank. Then he is given a loan amount by the bank or other financial institution to meet his needs in the form of immediate cash, after which the bank provides the facility to repay the loan in easy installments at a specific rate. , which is called EMI.
It is a defined loan term interest, in which the person has to pay the interest along with the principal amount. This interest is added to your monthly installment. The borrower has to pay the installments on a specified date. Apart from this, this EMI amount can also be paid through cheque, auto – debit and online mode.
How to Calculate EMI (EMI Calculation)
Now you must have come to know what is EMI. The monthly payment amount is called EMI. EMI divides the installment of the loan taken according to the tenure, as well as the interest on the entire loan is also added to these installments, such as: – One lakh rupees for one year (12 months) by a person The loan has been taken, on which the bank is charging 10 percent interest. In this way, your one-month installment will be Rs 8,792, in which 8,333 will be the principal amount and 458 will be the interest added.
EMI Calculation Formula _
SPIRIT = PIN
P = Principal loan amount
I = interest rate per month
N = installment number
EMI Payment Method
There are two ways to pay EMI, first online and second offline. Online, you can pay the installment through credit and debit card by visiting the bank’s website and entering the debit/credit number. Apart from this, you can pay the installments offline by paying cash by going to the bank.