ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Common installment loans include mortgages, auto loans, student loans, and personal loans. With each of these, you know how much your monthly payment is and how long you will make payments. An additional credit application is required to borrow more money.

Detailed explanation-3: -Installment credit This kind of credit is typically paid back on a fixed timeline, often with interest. And payments usually are for the same amount of money each month. Mortgages, car loans, student loans and personal loans all are examples of installment credit.

Detailed explanation-4: -installment credit, also called Installment Plan, or Hire-purchase Plan, in business, credit that is granted on condition of its repayment at regular intervals, or installments, over a specified period of time until paid in full.

Detailed explanation-5: -An installment debt is generally repaid in equal monthly payments that include interest and a portion of the principal. This type of loan is an amortized loan that requires a standard amortization schedule to be created by the lender detailing payments throughout the loan’s duration.