The fixed amount you repay each month on a loan, covering interest and part of the principal.
EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan, r the monthly rate and n the number of months. Early EMIs are mostly interest; later ones are mostly principal.
A longer tenure lowers the EMI but raises the total interest you pay.
₹5,00,000 at 11% for 5 years is an EMI of about ₹10,871, and ₹1,52,000 in interest over the loan.
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