What is EMI?
EMI (Equated Monthly Installment) is the fixed monthly payment a borrower makes to repay a loan, covering both interest and principal over the loan tenure.
Example
A $200,000 home loan at 8% over 20 years works out to an EMI of roughly $1,673 per month.
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Related terms
Interest Rate
An interest rate is the cost of borrowing money or the reward for saving it, expressed as a percentage. Central banks adjust benchmark rates to influence inflation and growth.
Inflation
Inflation is the rate at which the general level of prices for goods and services rises over time, reducing the purchasing power of money. Moderate inflation is normal in a growing economy; high inflation erodes savings.