What is EMI? Why EMI?

It is a fixed payment amount mutually agreed by the lender and the borrower, which the borrower agrees to pay the lender on a specified date each calendar month. Equated Monthly Installments (EMI) is used to pay off both interest and principal each month, so that over a specified number of years, the loan is paid off in full. The first few months, the EMI would have higher interest amount than the principal amount which will gradually be the opposite as the loan repayments happen.