EMI amount is paid every month as long as the loan amount is outstanding, which constitutes parts of interest & principal.Initially, a major part of the EMI consists of interest while as the tenure approaches to end; the principal component of the loan is more in the installment.
The benefit of an EMI for borrowers is that they know precisely how much money they need to pay towards their loan each month, making the personal budgeting process easier. But each and every one does not have time to calculate EMI for his/her loan, so there are few tools which make the task easy i.e. EMI calculator. This can be used as a guide before availing for any kind of loan. Further, it facilitates you to judge how affordable a loan can be