It
is a fixed payment amount mutually agreed by the lender and the
borrower, where the borrower agrees to pay the lender on a
specified date each calendar month. EMI stands for EQUATED MONTHLY INSTALLMENTS which are used to pay off both interest and
principal each month, so that over a specified number of years,
the loan is paid off in full. Initially EMI has higher interest amount than the principal amount that begins to decline with loan repayments.
The benefit of an EMI for borrowers is that they know precisely
how much money they will need to pay towards their loan each month
and on which date, making their personal budgeting process easier.
The borrowers can choose from a list of varied repayment options.
Loan track record is easily available online or with the banks. These records can provide details of number of EMI for a loan, Principal Amount, Rate Of Interest, Pending EMI, etc.
