GK
IMPORTANT ABBREVIATIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Equated Monthly Instalment
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Equalised Monthly Instalment
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Equated Money Instalment
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Equal Monthly Increment
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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: -Because every monthly payment is equal, these payments are called “equated monthly installments.” You agree to make those payments until the loan is paid in full. An equated monthly installment (EMI) includes principal, interest, and sometimes, fees rolled into the loan by the lender.
Detailed explanation-3: -The full form of EMI is Equated Monthly Instalment. EMI is a fixed sum payable to a moneylender by a borrower for a specified period at a particular date of every month.