New Delhi, June 2 -- Whenever a borrower takes a personal loan, the bank or the NBFC shares the EMI payment schedule. It has the details of the EMI amount, the number of EMIs, the EMI break up (principal and interest), etc. Have you ever thought about how the EMI is calculated? In this article, we will understand how the personal loan EMI is calculated and the factors that influence it.

The personal loan EMI (Equated Monthly Instalment) is the fixed amount that a borrower needs to pay every month to the bank or NBFC. The EMI has to be paid on a fixed date every month throughout the loan tenure. The bank usually asks the borrower to sign an auto-debit mandate. The mandate allows the bank to auto-debit the borrower's bank account with the ...