What is EMI?
Equated Monthly Instalment (EMI) is a fixed monthly payment made to a lender on a set date to repay a loan over time.
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The EMI Formula
EMI = [P × r × (1+r)^n] / [(1+r)^n – 1], where P = principal, r = monthly interest rate, n = number of months.
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How tenure affects total interest
A longer tenure reduces your EMI but increases the total interest paid. Use the amortization schedule to see the exact breakup.
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