{"id":11471,"date":"2024-04-10T12:33:44","date_gmt":"2024-04-10T07:03:44","guid":{"rendered":"https:\/\/fly.finance\/blog\/?p=11471"},"modified":"2025-02-13T15:42:02","modified_gmt":"2025-02-13T10:12:02","slug":"full-form-of-emi","status":"publish","type":"post","link":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/","title":{"rendered":"What is EMI: EMI Full Form, Types, Calculation"},"content":{"rendered":"\n<p><strong>EMI Full Form: <\/strong> <em>The full form of EMI is Equated Monthly Instalments<\/em> and it is one the most convenient ways to repay your loans. You must have heard of the term EMI in banking. Do you what exactly it means?  Saving you from undue financial strain, EMIs can help you finance everything from your smartwatch to your study-abroad educational pursuits. Instead of paying for them in lumpsum, one can choose to pay in equal instalments.<\/p>\n\n\n\n<p>Equated Monthly Installments (EMIs) provide several advantages, making borrowing more accessible and manageable for individuals. Knowing all about the details of this financial term and its working helps in hassle-free financial management. Let\u2019s know all about the EMI full form, its significance, components, working, calculation and everything else.<\/p>\n\n\n\n<div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><h2 id=\"table-of-contents\">Table of contents<\/h2><ul><li><a href=\"#h-what-is-the-full-form-of-emi\" data-level=\"2\">What is the Full Form of EMI?<\/a><\/li><li><a href=\"#h-what-is-emi\" data-level=\"2\">What is EMI?<\/a><\/li><li><a href=\"#h-types-of-emi\" data-level=\"2\">Types of EMI<\/a><\/li><li><a href=\"#h-features-and-significance-of-emi\" data-level=\"2\">Features and Significance of EMI<\/a><\/li><li><a href=\"#h-how-does-equated-monthly-installment-emi-work\" data-level=\"2\">How Does Equated Monthly Installment (EMI) Work?<\/a><\/li><li><a href=\"#h-emis-calculations\" data-level=\"2\">EMIs Calculations<\/a><\/li><li><a href=\"#h-factors-affecting-equated-monthly-instalments-payments\" data-level=\"2\">Factors Affecting Equated Monthly Instalments Payments?<\/a><\/li><li><a href=\"#h-faqs-on-emi-full-form\" data-level=\"2\">FAQs on EMI Full Form<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-the-full-form-of-emi\"><span id=\"what-is-the-full-form-of-emi\">What is the Full Form of EMI?<\/span><\/h2>\n\n\n\n<p><em>EMI full form is Equated Monthly Installments<\/em>. As the name suggests, these are the <strong>fixed equal payments<\/strong> made by the borrower to the lender <strong>every month<\/strong> at the specified date. When an individual takes a loan (personal loan, house loan, or education loan), the repayment is made in parts. EMI helps them to cover the initial amount of the loan, called the principal along with the interest due.<\/p>\n\n\n\n<p>The major loan amount is divided into smaller amounts that must be paid back at regular intervals. Thus, EMI helps in relieving the undue financial strain.<\/p>\n\n\n\n<p><strong>Also Read: Know about the most inclusive <\/strong><a href=\"https:\/\/fly.finance\/blog\/scholarships\/lgbtq-scholarships\/\"><strong>LGBTQ+ scholarships<\/strong><\/a><strong> all around the world. Explore various options that can be availed in the USA, Australia, New Zealand, the UK and Canada.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-emi\"><span id=\"what-is-emi\">What is EMI?<\/span><\/h2>\n\n\n\n<p>EMI is a systematic way of repaying a loan through fixed monthly payments over a specified period. The EMI amount remains constant throughout the tenure (in the case of fixed-rate loans), making it easier for borrowers to budget their finances.<\/p>\n\n\n\n<p>EMIs follow an amortization schedule, where a higher portion of the initial payments covers interest, while later installments contribute more towards the principal repayment. Over time, this ensures that the borrower gradually reduces their debt while paying consistent EMIs.<\/p>\n\n\n\n<p>Each EMI consists of:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Principal Component<\/strong> \u2013 The portion of the loan amount repaid each month.<\/li>\n\n\n\n<li><strong>Interest Component<\/strong> \u2013 The lender\u2019s charge on the borrowed amount, calculated as per the agreed interest rate.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-types-of-emi\"><span id=\"types-of-emi\">Types of EMI<\/span><\/h2>\n\n\n\n<p>EMIs (Equated Monthly Installments) can be structured in different ways depending on the type of loan and the borrower&#8217;s financial needs. While most people associate EMIs with fixed monthly payments, various EMI models cater to different financial situations. Here are the major types of EMI structures:<\/p>\n\n\n\n<p>The following table provides a clear comparison of EMI types based on their structure and best use cases:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>Type of EMI<\/strong><\/th><th><strong>Definition<\/strong><\/th><th><strong>How It Works<\/strong><\/th><th><strong>Best For<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Fixed EMI<\/strong><\/td><td>EMI remains constant throughout the tenure.<\/td><td>Higher interest paid initially, principal repayment increases over time.<\/td><td>Home loans, car loans, personal loans.<\/td><\/tr><tr><td><strong>Reducing Balance EMI<\/strong><\/td><td>Interest is charged on the outstanding principal, reducing EMI over time.<\/td><td>EMI decreases as interest reduces with a declining principal.<\/td><td>Home loans, business loans.<\/td><\/tr><tr><td><strong>Step-Up EMI<\/strong><\/td><td>EMI starts low and increases periodically.<\/td><td>EMI increases annually based on a fixed schedule.<\/td><td>Young professionals, long-term home loans.<\/td><\/tr><tr><td><strong>Step-Down EMI<\/strong><\/td><td>EMI starts high and decreases over time.<\/td><td>EMI reduces as loan tenure progresses.<\/td><td>Business owners, borrowers nearing retirement.<\/td><\/tr><tr><td><strong>Balloon EMI<\/strong><\/td><td>Low EMI throughout the tenure with a large final payment.<\/td><td>Borrowers pay small EMIs and a lump sum at the end.<\/td><td>Business loans, auto loans.<\/td><\/tr><tr><td><strong>No-Cost EMI<\/strong><\/td><td>Borrower pays only the principal, with interest covered by the seller or lender.<\/td><td>The product price is divided into equal installments without extra cost.<\/td><td>Consumer electronics, e-commerce purchases.<\/td><\/tr><tr><td><strong>Pre-EMI<\/strong><\/td><td>Only interest is paid until full loan disbursement.<\/td><td>Borrower pays interest on disbursed loan amounts, and EMI starts after full loan sanction.<\/td><td>Home loans for under-construction properties.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-features-and-significance-of-emi\"><span id=\"features-and-significance-of-emi\">Features and Significance of EMI<\/span><\/h2>\n\n\n\n<p>Choosing the right EMI type depends on income stability, future financial goals, and the loan&#8217;s purpose. Let\u2019s have a look at the main features and significance of choosing EMI as the repayment option.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>They are equal amounts of instalments paid at a specified date of every month.<\/li>\n\n\n\n<li>EMIs provide a structured way of loan repayment.<\/li>\n\n\n\n<li>It provides transparency to the borrowers on how much amount is to be paid monthly.<\/li>\n\n\n\n<li>EMIs are a flexible repayment option that can be customised and restructured as per the borrower\u2019s needs.<\/li>\n\n\n\n<li>EMIs are an affordable option for availing the benefits of the loaned-out asset and paying for it in upcoming years.<\/li>\n\n\n\n<li>Timely EMI payments help an individual improve their credit score.<\/li>\n\n\n\n<li><a href=\"https:\/\/fly.finance\/blog\/education-loan\/income-tax-rebate-on-education-loan\/\"><strong>Income Tax rebate under section 80E<\/strong><\/a> of the Income Tax Act is applicable to certain kinds of loans like education loans.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-does-equated-monthly-installment-emi-work\"><span id=\"how-does-equated-monthly-installment-emi-work\">How Does Equated Monthly Installment (EMI) Work?<\/span><\/h2>\n\n\n\n<p>The concept of EMI (full form is Equated Monthly Instalments) was introduced understanding that it might get challenging for an individual to repay huge amounts of funds taken to finance personal, housing, or educational dreams. To make the repayment easier, two major components- the principal amount and the interest amount were added to the monthly instalments.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The principal amount refers to the actual loan amount received by the borrower. (For example- if an education loan of INR 60 lakhs is availed, then 60 lakhs is the principal amount).<\/li>\n\n\n\n<li>The interest amount is the cost incurred by the borrower to utilise the principal amount. For example- on an education loan of INR 60 lakhs, if the monthly instalment is INR 55 thousand, then it will have an inclusion of interest amount based on the interest rate calculation).<\/li>\n<\/ul>\n\n\n\n<p>The borrowers agree to pay the principal amount + interest amount in equal monthly instalments. The repayment loan tenure ranges from months to years based on the loan amount and borrower\u2019s need. Initial EMI payments include a maximum amount towards interest payments. Over the years, the proportion allocated to interest decreases and the portion of the principal amount increases. Finally, timely EMI payments ensure repayment of the loan availed.<\/p>\n\n\n\n<p class=\"has-pale-ocean-gradient-background has-background\"><strong>Also Read: Want to know about the minimum family income needed to avail of study abroad education loans? Check out all the details on <\/strong><a href=\"https:\/\/fly.finance\/blog\/education-loan\/minimum-family-income-requirements-for-education-loan\/\"><strong>minimum family income requirements for education loans<\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-emis-calculations\"><span id=\"emis-calculations\">EMIs Calculations<\/span><\/h2>\n\n\n\n<p>Equated Monthly Instalments (EMI full form) are calculated using the formula:<\/p>\n\n\n\n<p class=\"has-text-align-center\"> <strong>[P \u00d7 R \u00d7 (1+R)^N] \/ [(1+R)^N-1]<\/strong> <\/p>\n\n\n\n<p>The formula takes loan tenure, interest rate and the loan amount into consideration for EMI calculation. Here, P stands for the principal amount, R stands for the monthly rate of interest (annual interest rate divided by 12), and N stands for the number of monthly instalments. <\/p>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Example of EMI Calculation:<\/span><\/strong><\/p>\n\n\n\n<p>Let\u2019s take an example to understand the EMI calculation in the following situation- Ram took an education loan of INR 50 lakhs at 9% p.a for 15 years. Now,<\/p>\n\n\n\n<p class=\"has-text-align-center\">P= 50 lakhs<br>N= 15 years<br>R= 9\/12\/100 = 0.0075<br><strong>EMI= [P \u00d7 R \u00d7 (1+R)^N] \/ [(1+R)^N-1]<\/strong><br><strong>50,00,000 * 0.075 * (1 + 0.0075)150 \/ ((1 + 0.0075)150 &#8211; 1) = INR 50,713.<\/strong><\/p>\n\n\n\n<p>Thus, based on the above formula and calculation, the following is the result of EMI calculation-<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td>Monthly EMI<\/td><td>INR 50,713<\/td><\/tr><tr><td>Principal amount<\/td><td>INR 50,00,000<\/td><\/tr><tr><td>Total interest<\/td><td>INR 41,28,399<\/td><\/tr><tr><td>Total amount<\/td><td>INR 91,28,399<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>You can simply use the <a href=\"https:\/\/fly.finance\/emi-calculator\"><strong>EMI Calculator<\/strong><\/a> and save yourself from the hassles of complex calculations. <\/p>\n\n\n\n<p class=\"has-pale-ocean-gradient-background has-background\"><strong>Also Read: Check about the <\/strong><a href=\"https:\/\/fly.finance\/blog\/education-loan\/education-loan-emi-calculator\/\"><strong>Education Loan EMI Calculator with or without the moratorium period<\/strong><\/a><strong> and <\/strong><strong>determine the significance and functioning of the same.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-factors-affecting-equated-monthly-instalments-payments\"><span id=\"factors-affecting-equated-monthly-instalments-payments\">Factors Affecting Equated Monthly Instalments Payments?<\/span><\/h2>\n\n\n\n<p>As discussed, Equated Monthly Instalment (full form of EMI) calculation is based on the principal amount, interest rate and loan tenure. These are the major factors that influence EMI payments. The higher amounts of loan amount, interest rates and loan tenure result in higher Equated Monthly Instalments. Other factors that affect EMI payments are down payments and credit scores. Let\u2019s have a look at these factors in detail-<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Principal Amount-<\/strong> If the borrower has taken a higher loan amount, the amount of the monthly instalment will also be higher.<\/li>\n\n\n\n<li><strong>Interest Rate-<\/strong> Loans availed at high interest rates automatically lead to higher EMIs. Make sure to compare the lenders and choose one that offers loans at competitive rates of interest.<\/li>\n\n\n\n<li><strong>Loan Tenure-<\/strong> Longer duration of repayment can result in smaller EMIs. However, this affects the overall interest costs (making them go higher).<\/li>\n\n\n\n<li><strong>Down Payment- <\/strong>Down Payment refers to the amount of initial payment when purchasing anything on credit. Larger down payments result in lower EMIs or Equated Monthly Instalments.<\/li>\n\n\n\n<li><strong>Credit Score- <\/strong>A good credit score often leads to loans at lower interest rates. This affects the overall EMI calculation.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-faqs-on-emi-full-form\"><span id=\"faqs-on-emi-full-form\">FAQs on EMI Full Form<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1712905548782\"><strong class=\"schema-faq-question\"><strong>What is the full form of EMI?<\/strong><\/strong> <p class=\"schema-faq-answer\">EMI stands for Equated Monthly Installments which is one of the most convenient ways to start making repayments of education loans, home loans, personal loans or others.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1712905550055\"><strong class=\"schema-faq-question\"><strong>What are the benefits of EMI payments?<\/strong><\/strong> <p class=\"schema-faq-answer\">EMI payments save borrowers from undue financial strains by making equal monthly instalments over a specified period. These payments are to be made on a fixed date of every month, and the timely payments help in improving the credit score. Also, the interest amount paid on the EMIs of education loans is subject to an income tax rebate under Section 80E of the Income Tax Act.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1712905551380\"><strong class=\"schema-faq-question\"><strong>What happens if an EMI payment is missed?<\/strong><\/strong> <p class=\"schema-faq-answer\">On missing the EMI payments, the borrowers have to pay penalties to the lender, irrespective of the reasons. The penalty is based on the loan terms and conditions. Make sure to not miss any EMIs as it can severely affect the credit score and history.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1712905552311\"><strong class=\"schema-faq-question\"><strong>What factors influence the EMI payments?<\/strong><\/strong> <p class=\"schema-faq-answer\">The major factors that influence EMI payments are the principal amount, interest rate and loan tenure. The higher amounts of loan amount, interest rates and loan tenure result in higher Equated Monthly Instalments. Other factors that affect EMI payments are down payments and credit scores.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1712905553491\"><strong class=\"schema-faq-question\"><strong>How do I calculate the EMI?<\/strong><\/strong> <p class=\"schema-faq-answer\">EMIs are calculated using the formula <strong>[P \u00d7 R \u00d7 (1+R)^N] \/ [(1+R)^N-1]<\/strong>. The formula takes loan tenure, interest rate and the loan amount into consideration for EMI calculation. If you have taken an education loan of INR 50 lakhs at 9% p.a for 15 years, the EMI will be INR 50,713 according to the formula.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1712906148848\"><strong class=\"schema-faq-question\"><strong>How do EMI full form work?<\/strong><\/strong> <p class=\"schema-faq-answer\">EMI payments are simple and convenient ways of repaying a loan or repaying for a thing bought on a credit. Borrowers have to simply pay the fixed equal amounts every month at a specified date till the amount is completely paid off.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1721205355642\"><strong class=\"schema-faq-question\">\u0908\u090f\u092e\u0906\u0908 \u092b\u0941\u0932 \u092b\u0949\u0930\u094d\u092e \u0915\u094d\u092f\u093e \u0939\u0948?<\/strong> <p class=\"schema-faq-answer\">\u0908\u090f\u092e\u0906\u0908 \u092b\u0941\u0932 \u092b\u0949\u0930\u094d\u092e \u0939\u0948 \u0938\u092e\u093e\u0928 \u092e\u093e\u0938\u093f\u0915 \u0915\u093f\u0938\u094d\u0924\u0964<\/p> <\/div> <\/div>\n\n\n\n<p>This was all about the full form of EMI and its benefits, working, and calculation. Make sure to read all the terms and conditions before choosing this convenient way of loan repayment.<\/p>\n\n\n\n<p><strong>Related Blogs<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table><tbody><tr><td><a href=\"https:\/\/fly.finance\/blog\/education-loan\/auxilo-education-loan-for-wards-of-defence-personnel\/\"><strong>Auxilo Education Loan for Wards of Defence Personnel<\/strong><\/a><\/td><td><a href=\"https:\/\/fly.finance\/blog\/education-loan\/education-loan-for-mba-without-collateral\/\"><strong>Education Loan for MBA without Collateral<\/strong><\/a><\/td><\/tr><tr><td><a href=\"https:\/\/fly.finance\/blog\/education-loan\/indian-army-education-loan\/\"><strong>Indian Army Education Loan<\/strong><\/a><\/td><td><a href=\"https:\/\/fly.finance\/blog\/education-loan\/education-loans-in-west-bengal\/\"><strong>Education Loans in West Bengal<\/strong><\/a><\/td><\/tr><tr><td><a 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Instalments and it is one the most convenient ways to repay your loans. You must have heard of the term EMI in banking. Do you what exactly it means? Saving you from undue financial strain, EMIs can help you finance everything from your smartwatch &#8230; <a title=\"What is EMI: EMI Full Form, Types, Calculation\" class=\"read-more\" href=\"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/\" aria-label=\"Read more about What is EMI: EMI Full Form, Types, Calculation\">Read more<\/a><\/p>\n","protected":false},"author":29,"featured_media":11477,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[],"class_list":["post-11471","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education-loan"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is EMI: EMI Full Form, Types, Calculation<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is EMI: EMI Full Form, Types, Calculation\" \/>\n<meta property=\"og:description\" content=\"EMI Full Form: The full form of EMI is Equated Monthly Instalments and it is one the most convenient ways to repay your loans. 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Finance"},"image":{"@id":"https:\/\/fly.finance\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/fly.finance\/blog\/#\/schema\/person\/1f13adc00f6f67e7ed5a2fb5e97bfec6","name":"Shubhika Garg","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/df0315e532cdf62ee7275a4a65914c25f90ec1b0b137b1bf0bbca958325909f8?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/df0315e532cdf62ee7275a4a65914c25f90ec1b0b137b1bf0bbca958325909f8?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/df0315e532cdf62ee7275a4a65914c25f90ec1b0b137b1bf0bbca958325909f8?s=96&d=mm&r=g","caption":"Shubhika Garg"},"description":"Hey there! I'm Shubhika- a proud graduate in English Literature and Language from Delhi University. My journey as a content writer transitioned from online teacher into the world of words. Stepping into the domain of blogs and articles, I discovered my passion for writing growing deeper and stronger. Having said that, I have experience of writing for diverse industries in automobile, technology, ed-tech, finance and mental-health; crafting details to help you find the solution to what you are looking for. Join me as I invite you all explore and learn together.","sameAs":["https:\/\/www.facebook.com\/shubhika.garg\/","https:\/\/www.instagram.com\/shubhika.garg\/","https:\/\/www.linkedin.com\/in\/shubhikagarg71\/","https:\/\/www.tumblr.com\/blog\/shubhikahere"],"url":"https:\/\/fly.finance\/blog\/author\/shubhika\/"},{"@type":"Question","@id":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905548782","position":1,"url":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905548782","name":"What is the full form of EMI?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"EMI stands for Equated Monthly Installments which is one of the most convenient ways to start making repayments of education loans, home loans, personal loans or others.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905550055","position":2,"url":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905550055","name":"What are the benefits of EMI payments?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"EMI payments save borrowers from undue financial strains by making equal monthly instalments over a specified period. These payments are to be made on a fixed date of every month, and the timely payments help in improving the credit score. Also, the interest amount paid on the EMIs of education loans is subject to an income tax rebate under Section 80E of the Income Tax Act.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905551380","position":3,"url":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905551380","name":"What happens if an EMI payment is missed?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"On missing the EMI payments, the borrowers have to pay penalties to the lender, irrespective of the reasons. The penalty is based on the loan terms and conditions. Make sure to not miss any EMIs as it can severely affect the credit score and history.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905552311","position":4,"url":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905552311","name":"What factors influence the EMI payments?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"The major factors that influence EMI payments are the principal amount, interest rate and loan tenure. The higher amounts of loan amount, interest rates and loan tenure result in higher Equated Monthly Instalments. Other factors that affect EMI payments are down payments and credit scores.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905553491","position":5,"url":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712905553491","name":"How do I calculate the EMI?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"EMIs are calculated using the formula <strong>[P \u00d7 R \u00d7 (1+R)^N] \/ [(1+R)^N-1]<\/strong>. The formula takes loan tenure, interest rate and the loan amount into consideration for EMI calculation. If you have taken an education loan of INR 50 lakhs at 9% p.a for 15 years, the EMI will be INR 50,713 according to the formula.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712906148848","position":6,"url":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1712906148848","name":"How do EMI full form work?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"EMI payments are simple and convenient ways of repaying a loan or repaying for a thing bought on a credit. Borrowers have to simply pay the fixed equal amounts every month at a specified date till the amount is completely paid off.","inLanguage":"en-US"},"inLanguage":"en-US"},{"@type":"Question","@id":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1721205355642","position":7,"url":"https:\/\/fly.finance\/blog\/education-loan\/full-form-of-emi\/#faq-question-1721205355642","name":"\u0908\u090f\u092e\u0906\u0908 \u092b\u0941\u0932 \u092b\u0949\u0930\u094d\u092e \u0915\u094d\u092f\u093e \u0939\u0948?","answerCount":1,"acceptedAnswer":{"@type":"Answer","text":"\u0908\u090f\u092e\u0906\u0908 \u092b\u0941\u0932 \u092b\u0949\u0930\u094d\u092e \u0939\u0948 \u0938\u092e\u093e\u0928 \u092e\u093e\u0938\u093f\u0915 \u0915\u093f\u0938\u094d\u0924\u0964","inLanguage":"en-US"},"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/posts\/11471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/comments?post=11471"}],"version-history":[{"count":5,"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/posts\/11471\/revisions"}],"predecessor-version":[{"id":17613,"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/posts\/11471\/revisions\/17613"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/media\/11477"}],"wp:attachment":[{"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/media?parent=11471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/categories?post=11471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fly.finance\/blog\/wp-json\/wp\/v2\/tags?post=11471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}