{"id":740,"date":"2017-12-21T12:40:48","date_gmt":"2017-12-21T07:10:48","guid":{"rendered":"http:\/\/blog.ruloans.com\/?p=740"},"modified":"2017-12-21T12:40:48","modified_gmt":"2017-12-21T07:10:48","slug":"what-is-an-emi","status":"publish","type":"post","link":"https:\/\/www.ruloans.com\/blog\/what-is-an-emi\/","title":{"rendered":"What is an EMI?"},"content":{"rendered":"

An\u00a0Equated Monthly Installment (EMI)<\/strong>\u00a0is a fixed payment made by a borrower to a lender on a specified date each month. It is a common financial term used in loan repayments, allowing borrowers to pay off any type of loan in manageable monthly installments. The amount of EMI<\/a> is determined by three main factors:<\/p>\n

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  1. Principal Loan Amount:<\/strong>\u00a0This is the total amount borrowed from the bank or NBFC.<\/li>\n
  2. Rate of Interest:<\/strong>\u00a0The interest rate, which can be either fixed or floating, is set by the lender based on the borrower’s creditworthiness and market conditions.<\/li>\n
  3. Tenure:<\/strong> This refers to the duration over which the loan must be repaid.<\/li>\n<\/ol>\n

    When a borrower takes a loan, the repayment is structured into equal monthly installments that cover both principal and interest, ensuring the loan is fully paid off by the end of the tenure.<\/p>\n

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