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Term

EMI
raagvamd, RaagVamdatt

It is an acronym or short form for Equated Monthly Installment. This is the amount that is paid by the borrower to the lender every month.

It comprises of two components - the principal and the interest. During the initial period of the loan, the EMI has a larger component of interest as compared to the principal. But during later stages of a loan, the EMI has a larger component of principal as compared to the interest.

Related Terms: Equated Monthly Installment
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