What are EMI's?
EMI - equated monthly installment.
EMI basically is repayment of the loan amount, in parts on monthly basis. The loan amount, whatever the type of loan, is paid back through a series of monthly payments. The payment for each month is done by issuing post-dated cheques drawn in favor of bank or the lender, or through standing intrsuctions set up. EMI’s are to be paid until the complete amount due is paid up. Also, as the amount of loan taken increases, the EMI amount also increases. If the tenor of the loan is extended then the EMI amount is reduced. It doesn’t mean you will have to payback less amount but rather the monthly amount that you have to pay decreases but the number of months of repayment increases..