EMI, or Equated Monthly Instalment, is the fixed amount you pay every month until your loan is fully repaid. It covers both the principal and the interest, spread across your chosen tenure.
A longer tenure means smaller EMIs but more total interest over the life of the loan. A shorter tenure means bigger EMIs but you clear the loan faster and pay less interest overall.
Before choosing a tenure, calculate what fits your monthly budget without straining your other expenses. A common rule is to keep your EMIs under 30 to 40 percent of your monthly income.
Always read the loan agreement for prepayment charges and processing fees. Understanding these in advance helps you plan whether early repayment makes sense for you.