EMI (Equated Monthly Installment) is the monthly payment you make to repay a loan.
It includes both principal and interest.
EMI = P × R × (1+R)^N / ((1+R)^N − 1)
If you take ₹1,00,000 loan at 10% for 2 years, your EMI will be calculated based on interest and tenure.
EMI plays a major role in personal loans.
Read here: How Personal Loan Works
Home loan EMI is usually long-term and lower compared to personal loans.
Learn more: Home Loan Basics
EMI depends heavily on interest rates.
Read this: How Bank Interest Works
Before taking loans, always understand repayment capacity.
Read: How to Avoid Loan Traps