Question 1

What is EMI?

Accepted Answer

EMI (Equated Monthly Installment) is the fixed monthly payment you make to repay a loan. It includes both principal repayment and interest charges.

Question 2

How is EMI calculated?

Accepted Answer

EMI = P x R x (1+R)^N / ((1+R)^N - 1), where P is the loan amount, R is the monthly interest rate, and N is the number of monthly installments.

Question 3

What factors affect my EMI?

Accepted Answer

Loan amount, interest rate, and loan tenure are the three key factors. Higher loan amounts and interest rates increase EMI, while longer tenures reduce monthly payments but increase total interest.

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