BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What does EMI indicate in the context of a bank loan?
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Equal Monetary Incentive
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Equated Monthly Instalment
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Exact Monthly Indicator
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Exact Mean Index
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Explanation:
Detailed explanation-1: -What is an EMI? An equated monthly instalment (EMI) is a set monthly payment provided by a borrower to a creditor on a set day, each month. EMIs apply to both interest and principal each month, and the loan is paid off in full over some years.
Detailed explanation-2: -An equated monthly installment (EMI) is a fixed payment amount made by a borrower to a lender at a specified date each calendar month. Equated monthly installments are applied to both interest and principal each month so that over a specified number of years, the loan is paid off in full.
Detailed explanation-3: -The formula to calculate EMI is
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