In the realm of financial possibilities, where dreams are given wings and aspirations find their footing, there’s a term that holds the key to making things more affordable. It’s a concept that’s both practical and accessible, catching the attention of those in need of financial assistance. EMI—short for Equated Monthly Instalment, is a term that resonates with caution. But what hides beneath this enigmatic acronym? Let us explore what an EMI is and other details about it in this article here.
What is EMI? EMI, a term you often encounter when dealing with loans or making significant purchases, provides a convenient way to manage your expenses and make your purchases more affordable. Here’s how it works with Digifund: Suppose you want to buy a car worth ₹2,00,000. Instead of paying the complete amount upfront, you can opt to repay a loan in monthly installments over a fixed period, typically spanning a few years. The EMI represents the fixed monthly amount you pay towards the loan. EMIs simplify your financial planning, as you know the exact amount you must pay each month. Additionally, they allow you to distribute the cost of your purchase evenly over an extended period. However, it’s important to be aware of the interest rate and the total cost you will incur over the loan tenure, as you will be paying interest on the loan amount.