EMI full form in banking is Equated Monthly Instalments. As its name suggests, EMI is a specified amount payable by a borrower to a financial institution or moneylender on a specific date of every month for a specified period. Simply put, EMI is an unequal blend of the principal and interest rates. This applies to both the monthly principal and interest, and the loan is paid off over a few years. The benefit of these loans is that the due can be made in equated monthly instalments. And it is calculated on the basis of tenure, loan amount, and the interest on the loan.
What are the Benefits of EMI?
- An essential advantage of EMI is that it gives one the power to make purchases beyond their monetary reach, enabling them to pay in installments.
- EMI differs from many payment plans in that the borrower can pay the higher repayment at his discretion.
- Borrowers in EMI schemes have only a fixed amount of monthly payment.
Other Abbreviations of EMI
- Educable Mentally Impaired – Educational
- Ecumenical Ministries of Lowa – Religion
- Educate, Motivate, and Inspire – Educational
- Electrical and Mechanical Industries – Companies & Firms
- Electronic Money Institution – Accounting
- Email Marketing Insights – Companies & firms