Answer: An Equated Monthly Installment (EMI) is what you pay every month towards repayment of your loan (or) Insurance booked. EMI depends on the loan amount, the rate of interest and the tenure of the loan. For a given loan amount and interest rate, your EMI can be lower if you increase the loan tenure.
- Check out our Loan EMI Calculator to find out by how much you can reduce your present EMI by increasing the loan tenure. Of course, keep in mind that banks will allow you to increase the tenure only up to your retirement age.
- Your EMI comprises an interest component and a principal component. Use the EMI calculator to find out how much EMI you would have to pay on your loan and how much of the total repayments will contribute to interest and how much to principal.