EMI stands for Equated Monthly Installment. It is a fixed amount paid each month towards a loan, including both principal and interest.
The EMI calculation formula takes into account the loan amount, interest rate, and loan tenure.
The higher the loan amount, interest rate, or loan tenure, the higher the EMI will be.
Most lenders allow prepayment of loans, but there may be prepayment penalties.
With a fixed rate loan, the interest rate remains constant throughout the loan tenure. With a floating rate loan, the interest rate can fluctuate based on market conditions.
