## EMI full form

The full form of EMI is Equated Monthly Installment.  EMI is called equal monthly installment in Hindi language.  If EMI is said in simple terms then it is a type of monthly installment.  The person who has to pay every month who buys any kind of product on EMI. Friends, we hope that by reading the full form of EMI, you will understand what EMI is.  So now let's talk about other general information about it.
 EMI full form

The full form of EMI is Equated Monthly Installment.  To repay the money taken as a loan from EMI Bank or any Financial Institutions, the bank gives you the facility to repay the loan amount in installments.  For this, an amount is fixed for you by the bank and a period is also fixed for completing that amount.  You have to submit the entire loan of the bank in the same period.

Under EMI, you have to give an amount to the bank which has both principal and interest and this amount has to be given within the given time limit.  If the interest rate increases between the time limit given to you then your time limit will also increase.  This means you get more time to pay more EMI.

### How to calculate EMI

The calculation of EMI depends on three factors which are as follows -

Interest Rate: The rate of interest charged by a moneylender, such as a bank.

Loan Amount: The amount borrowed.

Tenure of the Loan: Time for the lender to repay the entire loan with interest.

### Flat interest rate

If we talk about flat interest rate then we would like to tell you that interest is calculated on the entire principal loan, without considering the fact that the principal amount is decreasing with each EMI.  For example, a person wants to buy a car and takes a loan on a car of 3 lakh, a flat interest rate at 12% and it has to be repaid in 3 years, then the EMI can be calculated as given below.

Principal Amount 300,000

Flat Rate of Interest: 12%

Total Duration: 3 Years

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