What does EMI mean?

EMI meaning refers to Equated Monthly Installment, which is the fixed monthly payment made to the bank for a mortgage. An EMI includes:

• Interest: A portion of the EMI is allocated to the interest charged on the remaining loan balance.
• Principal: The other portion repays the actual loan amount (principal). Over the mortgage term, the proportion of interest and principal in each EMI changes, helping borrowers manage their finances effectively.