EMI stands for Equated Monthly Installment. It's the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are 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.

Yes, most lenders allow loan prepayment, either partially or fully. However, some lenders may charge a prepayment penalty, especially for fixed-rate loans. It's best to check with your lender about their prepayment policies and any associated fees.

The EMI amount is inversely proportional to the loan tenure. A longer tenure means smaller EMIs but more interest paid overall. A shorter tenure means higher EMIs but less total interest. Our EMI calculator helps you visualize this relationship.

Three main factors determine your EMI:

• Loan amount: Higher principal means higher EMI
• Interest rate: Higher rate increases EMI
• Loan tenure: Longer tenure reduces EMI but increases total interest

Reducing balance calculates interest on the outstanding principal, so interest decreases over time. Flat rate calculates interest on the original principal throughout the loan term. Reducing balance is more common and generally better for borrowers as it results in lower total interest.

You can reduce your EMI by:

• Opting for a longer tenure
• Making a larger down payment to reduce principal
• Negotiating for a lower interest rate
• Refinancing your loan when rates drop
• Making partial prepayments when possible