What is the Full form of EMI?
Haven't we all come across this term in the malls and stores and online stores? Yes, we did, and most of us are still ignorant about the emi full form. The complete form of the abbreviation of EMI is Equated Monthly Installment, which asks you to pay a fixed amount to the seller on a fixed date of every month with a fixed interest rate. This is done as long as the EMIs are to be paid. It is done when you do not have a chunk amount of cash to pay.
The Three Main Components of EMI:
Interest rate, Principal loan amount, and the tenure of the EMI are the three main factors on which EMI (check the full meaning of emi) is calculated. The rate of interest is considered by the person or organization from whom you are availing the EMI. The interest rate is calculated in two ways
Flat interest rate
Diminishing balance interest rate
Benefits of Opting For an EMI
The demand for EMIs has surged in recent years as more people have come to know the emi full form and meaning, and the reasons are galore. Most people make purchases on EMIs based on their income, the date of salary credit, and how much cash they can afford at the moment.
Easy and Quick Purchases: You are free to make instant purchases in case of need and luxury both. You need not wait for the right time at all.
Direct Contact With the Seller: Since this will lead to a direct involvement between the seller and you, there is no question of a third party involvement to create any nuisance.
No Cash Drain Out: Understanding the emi acronym will help you to save your money by preventing a considerable cash deposit.
Easy Availability : Emi stands for Equated Monthly Installment that is readily available at most of the stores, which lets you buy things that you need.
Conclusion
Equated Monthly Installment is the emi full form and by now we know what it is all about. There are certain advantages of EMIs for everyone that opts for it. We come across the term every time we go to purchase something. However, EMIs are available on selected items.
Besides everything the buyer's discretion is a must and you must go through all the terms and conditions of the EMI before settling down for one. Feel free to ask the person concerned if you have any doubts or queries regarding the EMI.
FAQs on EMI Full Form
1. How can I Apply for an EMI?
Ans: If you want to make a purchase based on EMI or Equated Monthly Installment, then you just have to inform the seller. He will make all the arrangements for you against a cancelled cheque of a bank from where the money would be deducted and your identity proof. Once the procedures are done, you will be good to go ahead with the purchase. Nowadays credit cards can also be used to purchase anything with the help of EMI.
2. Will the Shopping Centres Let me Buy Appliances on EMIs?
Ans: Definitely. The shopping centres will let you make all your purchases on EMI. This will be beneficial for both parties. The EMI (Equated Monthly Installment) scheme has made purchases easier without you having to pocket out a huge sum of money at one go.
3. Will the Seller Create any Problem if I Purchase an Item on the Basis of EMI?
Ans: No, the seller will be in no position to create any problems because you will only go for the EMI once all the terms and conditions are understood by you. If you find anything that is not acceptable then you can always refrain from accepting the EMI facility.