Loans & credit
EMI
Also known as: Equated Monthly Installment
The fixed monthly payment you make to repay a loan, covering both interest and principal.
An EMI is the same amount you pay every month until a loan is fully repaid.
Early on, most of each EMI goes toward interest and only a little toward the principal. That flips over time.
A longer tenure lowers the EMI but massively increases the total interest you pay. Cheaper monthly, costlier overall.
For example
A ₹30L home loan at 9% for 20 years is roughly a ₹27,000 EMI, but you end up paying over ₹34L in interest alone.