In the finance world, EMI stands for equated monthly installment. It refers to periodic payments made to settle an outstanding loan within a stipulated time frame. As the name suggests, these payments are the same amount each time.

Why do you need EMI software?

An equated monthly installment (EMI) is a fixed payment made by a borrower to a lender on a specified date of each month. EMIs are applied to both interest and principal each month so that over a specified time period, the loan is paid off in full. EMIs can be calculated in two ways: the flat-rate method or the reducing-balance method. The EMI reducing-balance method is generally more favorable for borrowers, as it results in lower interest payments overall. EMIs allow borrowers the peace of mind of knowing exactly how much money they will need to pay each month toward their loan.