A fixed monthly payment that includes both principal and interest portions of a loan. In the initial years, most of the EMI goes towards interest; in later years, more goes towards principal. EMI = [P × r × (1+r)^n] / [(1+r)^n − 1] where P is principal, r is monthly rate, n is total months.
You take a ₹30,00,000 home loan at 8.5% for 20 years. Your EMI is about ₹26,035. In the first month, ₹21,250 goes to interest and only ₹4,785 to principal. After 10 years, it flips — more goes to principal.
Upload your agreement and our AI will explain every clause — including emi (equated monthly instalment) — in plain language.
🛡️ Analyse Your Document Free →