| | E | Equated Monthly Installment - EMI |
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| What is EMI?
EMI stand for Equated Monthly Installment. This means that the borrower pays each month on the same day a fixed amount of money. This way it can pay of his debt and interest. Also he can't pay more then the already agreed sum.
For example your taking out a mortgage loan and by using EMI your paying a fixed amount month by month and your goal is to pay off the debt. The difference between EMI and other variable payment plan is that you can't pay more then the settled amount. | | | | |
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