EMI means Equated Monthly Instalment. This means equal amount of money one has to pay every month to the lender. EMI is a fixed amount that is being calculated based on the loan amount, rate of interest and time period of the loan. For the calculation of the EMI one needs to know about the variables that are needed to tell you how much you are required to pay off to your lender on each month.
The first thing is the loan amount. As for example say the loan amount is ₹5,000,000/- in total. One of the major parts of the EMI will be the loan amount.
The second important thing in calculation of EMI for the Home Loan is the rate of interest. There is a fixed rate of interest that is given by the lender. The EMI will be calculated according to the rate. Say in our example the rate is 9.5% per year. Another part of the EMI is the interest amount payable to the lender.
The third part of the EMI is the tenure of the loan repayment that is how much time you will get to repay the loan to the lender. For example we can consider 20 years in this case. So for next 20 years the applicant needs to pay EMI every month accordingly.