Equated Monthly Instalment (EMI) :
It means a uniform lumpsum amount, which includes repayment of a part of the principal amount and payment of interest, calculated on Monthly Rest basis. The amount is payable monthly.
EMI can commence -
i. Immediately after full disbursement. or
ii. After the loan is fully disbursed or until 12 months from the date of first disbursement whichever is earlier.
Untill EMI starts, Interest is payable on the Amount Disbursed on monthly basis.
Answered by
Nagendra
at
7:19 PM on November 24, 2008