On this page, We are going to learn about the full form of EMI and the meaning of EMI, As well as the meaning, definition, and acronym for EMI in different categories. So you should read this post till the end.
Full Form of EMI » Equated Monthly Instalment
EMI Stands for Equated Monthly Instalment. EMI refers to the amount of money that needs to be paid for a loan, mortgage, or credit card each month. The amount is usually determined by the interest rate and the amount of money that is being borrowed.
when you buy something on credit, you usually pay for it in installments or a series of payments. When you buy something on credit, you often have the option of paying one-time full payments or making smaller payments over time. These smaller payments are called Equated Monthly Instalments, or EMIs.
EMI is often used in the context of loans and mortgages to represent a series of monthly payments over the life of the loan. In the context of credit cards, EMI often refers to a minimum monthly payment rather than the full payment that needs to be paid each month. To calculate EMI There are 3 major factors that affect EMI:
- Loan Amount
A loan Amount is the principal amount that you borrow and is the primary factor that decides your EMI. The higher the loan amount, the higher will be the EMI.
- Interest rate
Lenders calculate interest based on several factors like your income, repayment capacity, credit history, current market conditions, etc.
- Tenure of the Loan
This is the third factor that affects your EMI. Longer tenure generally means lower EMI
How to Calculate EMI
In flat interest rate, the interest is calculated on the entire principal loan, a person wants to buy a mobile and take a loan on mobile of 25000, at a flat interest rate of 12% and it has to be repaid in 2 years then the EMI is calculated as some will be like this
| EMI = P × r × (1 + r)n/((1 + r)n – 1) | Principal Amount – 25000 Flat Rate of Interest: 12% Total Duration: 2 Years |
| where P= Loan amount, r= interest rate, n=tenure in number of months | Final Output EMI – ₹1176.83 Interest Payable – ₹3243.95 Total Payment – ₹28243.92 |
There are some of the most commonly used acronyms, abbreviations, full forms, and the EMI meaning are listed in different categories below the table.
| Temrs | Full Forms |
|---|---|
| EMI | Extra Military Instruction Governmental |
| EMI | Elderly Mentally Infirm Medical |
| EMI | External Memory Interface Computing |
| EMI | Equated Monthly Instalment Business |
| EMI | European Monetary Institute Business |
| EMI | Electronic Medical Information Medical |
| EMI | Egg Marketing Inspectorate Medical |
| EMI | Elderly Mentally Ill Governmental |
| EMI | Electro-Magnetic Interference Academic & Science |
| EMI | Every Mistake Imaginable Miscellaneous |
| EMI | Energy Management Interface Computing |
| EMI | Emergency Management Institute Governmental |
| EMI | Electrical and Musical Industries Community |