EMI Full Form Name: EMI Meaning
Full
Form of EMI :
Equated
Monthly Installment
EMI
Full Form is Equated Monthly Installment. EMI
is an amount repaid by the borrower to the lender along with the agreed
interest. EMI applies to various loans like home loan, gold loan, car loan,
personal loan and more. The general calculation of EMI is derived by adding the
principle amount and interest and dividing it by the number of months in the
period the borrower agrees to pay the full amount. To simply put, EMI is the installment
payment of the loan to the lender.
The
benefit that a borrower enjoys through EMIs is that he or she exactly knows how
much amount is to be paid each month, which makes budget planning much simpler.
In an EMI calculation, the two variables comprise of principle and interest.
During the initial years, the interest would be higher as the amount overdue is
higher. And the interest eventually decreases as years pass by and the
principle amount gradually reduces.
EMI
Full Form – Additional Information
In
today’s world, it is very difficult to live within your own means. However rich
or poor a person may be, every individual needs to borrow money for various
reasons at some juncture of life. The poor or middle class may borrow for their
personal needs like home, vehicle, household gadgets etc. The rich and the
affluent borrow money to expand their business or start new ventures, etc. The
reasons may vary, but the bottom line is that money is borrowed from usually a
bank or a private lender.
What
is EMI?
Once
you borrow money for your needs, it has to be repaid to the lender – bank or
individual. In order to facilitate easy repayment of the loan without burdening
the borrower of heavy random give- outs every month, the system of EMI or
Equated Monthly Installment was introduced.
EMI
is the payment that a borrower does as his loan repayment amount to the lender
on a fixed date every month. This composes of the interest as well as the part
principal amount. When the tenure of the loan gets over, the entire amount is
paid off through these EMIs and the end balance is nil.
The
EMI is calculated with three factors in consideration – the principal amount
(borrowed amount), the annual rate of interest and the tenure of the loan. The
formula that calculates the EMI is thus:
Where
P stands for the Principal amount, r is the annual rate of interest divided by
12 and n denotes the number of monthly installments.
The
formula may seem complicated for a common man to comprehend, but in reality, it
makes the life easier for him since he knows exactly what portion of his
monthly earning is going to be deducted towards the loan. And this being a
FIXED amount every month, it is simple while budgeting for the expenses.
How
is EMI calculated?
As
mentioned above, EMI is calculated using the formula and that the Principal
loan amount, the annual rate of interest and period of the loan is taken into
consideration. After calculating the EMI or equated monthly installment, the
person is expected to pay the designated amount on a fixed date, usually by the
first week of every month, after the 5th (taking into consideration
that the salaried people get their pay by that day).
During
the initial period, the EMIs are high on interest portion and lower on the
principal amount. When the interest is almost covered and the loan comes
towards the end of its tenure, then the Principal part is hiked and the
interest portion goes down. Balancing these two aspects, finally, by the end of
the tenure, the entire loan amount is recovered by the lender.
Unlike
the variable payment plan where the borrower has the liberty to pay higher
amount a particular month as per his choice, the EMIs are constant and cannot
be changed. As the principal amount is paid up gradually, the balance
automatically reduces and the interest is calculated for further years on the
reduced principal. Longer the tenure, smaller the amount of EMI and conversely,
shorter tenure incurs high EMI.
Advantages
of EMI as against variable payment plan
- A variable payment plan may
give the borrower freedom of choosing his payment amount. But in the long
run, it creates problems for budgeting. Whereas EMI is a fixed amount that
is to be paid monthly.
- Since you know the amount that
is going to be deducted every month, there is no scope for speculation and
your budget getting disturbed.
- Since the amount is variable,
the borrower finds it difficult to advise the bank for electronic transfer
after salary. In the case of EMI, the amount being constant, it is easy to
advise the bank for a direct cut from account every month.
- Variable payment cannot be made
through post dated cheques, as the borrower himself is not sure about his
capacity to pay in a particular month. EMIs can easily be paid through
PDCs (post dated cheque) since you know the exact amount to be given out
each month.
- EMI option permits the borrower
to have a clear picture of his monthly budget. On the other hand, a
variable payment plan is full of uncertainty.
When
does one need to pay EMI?
Whenever
you borrow money and have to refund it, the EMIs start. The lender can be a
bank or an individual money lender, but the criteria remain the same. Every
borrower has to pay a specific amount every month in the form of EMI and the
payment is made on a fixed date. So whether you give the electronic transfer
option or post-dated cheques, the amount needs to be cleared on that specified
date.
This
is a world of borrowing and repaying. You need to buy something for the house,
need funds for your vacation, have a dream house or car in mind but cannot
purchase it cash down, the reasons may be endless but the need is the same –
money. In the case of businessmen, expansion of business or entering into new
avenues needs funding in a big way and thus, there is a need to borrow.
Under
any circumstances, the EMI clock starts from the month after your borrowing.
For this, you have to fix the tenure of the loan with the lender and agree to
the rate of interest per annum. After these issues are settled, then it is easy
to convey to you the EMI amount depending on the sum borrowed.
Knowing
more about handling EMI
Equated
Monthly Installment has made life simpler for the masses. It is particularly
useful for salaried persons as they get loan very easily on the basis of their
employment and the installment gets auto deducted from borrower’s account after
payday. However, if you happen to default on an EMI, you are levied penalty or
recovery agents are sent to collect the dues. Before borrowing a sum, the
borrower should judge his repayment capacity and then decide on the tenure of
repayment.
Longer
the tenure, easier it is in his pocket every month as the EMI amount reduces
considerably. Currently, the trend is to lure a buyer by giving him easy EMI
options and interest-free EMIs. So under such cases, the shopkeepers have a
tie-up with certain banks that fund the consumer to purchase goods. According
to his credit standing, the future payments are deducted from his salary
account. Whatever be the case, when you need to borrow money take only the
required amount and pay the installments on time to prevent the penalty.
EMI
Full Form: Electro Magnetic Interference
Full
Form of EMI refers to Electro Magnetic
Interference. Also known as radio-frequency interference, Electromagnetic
Interference is a disturbance or disruption of the performance of an electronic
device in the presence of a radio frequency spectrum. The disturbance that is
generated from the external source affects the electrical circuit through
electromagnetic induction, conduction, or electrostatic coupling. The
interference might completely stop the function of the circuit or just reduce
the performance level of the circuit. Intentionally, it is used in electronic
warfare to create radio jamming.
EMI
can be of two types – Broadband EMI and Narrowband EMI. Another method of
differentiating the kinds of EMI is by the duration of interference. There is
continuous interference EMI and Impulse noise EMI, which is manmade. Most
often, Integrated circuits happen to be the source of EMI, if they couple their
energy to large objects like circuit board planes, heat sinks, or cables, to
significantly radiate.
Full
Form of EMI: European Monetary Institute
EMI
Full Form stands
for European Monetary Institute. It was a temporary institution, which
was established at the beginning of stage two of EMU or Economic and Monetary
Union. It was established on 1 January 1994. European Monetary Institute was
the predecessor of the current European Central Bank or ECB. EMI operated
between 1994 and 1997. The primary objective of EMI was to oversee the creation
of monetary union – second stage. It took over from the former EMCF or European
Monetary Cooperation Fund.
The
prime objectives of EMI were to make preparations needed to establish ESCB or European
System of Central Banks, and to strengthen monetary policy coordination and
central bank cooperation. It had taken the view that the market participants
must determine their own means and ways to adapt to a single currency. It has
contributed to areas like; the definition of changeover; legal framework for
Euro introduction; the infrastructure of the payment system; and adoption of
market standards.
EMI
Full Form: Engineering Ministries International
Full
Form of EMI refers
to Engineering Ministries International. It is a Christian development,
non-profit organization, which is made of engineers, architects, and various
design professionals who can offer their skills to help families and children
all over the world to come out of poverty and give hope for a bright future.
The
mission is to mobilize the skills of professionals in order to minister the
less fortunate in the developing nations. It is said to proclaim Gospel of
Jesus, through these deeds. The main objective is to enrich lives of those who
receive and those who give. EMI involves in various service areas such as;
technology/computers, disaster relief, engineering, architecture, construction,
international missions, and more.
Full
Form of EMI: External Machine Interface
EMI
Full Form stands
for External Machine Interface. It is an extension to the UCP or
Universal Computer Protocol and is basically used to connect SMSC or Short
Message Service Centers for all types of mobile telephones. External Machine
Interface was developed by the CMG Wireless Data Solutions, which is currently
a part of Logical CMB – the SMSC market lead.
Every
byte of the message is encoded into two hexadecimal characters with the help of
encoding, which is different from ASCII. EMI provides access to functions of
SMSC such as submission of short messages; reception of short messages; and
reception of notification. Setting up of connection between SMSC and SMT
depends on the career, which is used. Once a connection is established, EMI
operations can be applied.
EMI
Full Form: Experimental Musical Instruments
Full
Form of EMI refers to Experimental Musical
Instruments. Otherwise called as Custom-made Instruments, the experimental
musical instruments are those that extend or modify the existing musical
instruments or created as a new class of experiment. At times, these
modifications are as simple as just inserting metal objects between the strings
of a piano to produce a different type called ‘prepared piano’.
Some
of the EMIs are made from household things like bathtub plus or mute, etc.
There are also instruments that are created out of spare electronic parts or by
blending electric components with acoustic instruments. The concept of
Experimental Musical Instrument started in 1985, as a part of the quarterly
journal devoted to the unconventional instruments. Slowly, over the past years,
people were increasingly involved in utilizing their creativity to produce a
wide range of materials related to musical instruments.
Full
Form of EMI: English as the Medium of Instruction
EMI
Full Form stands
for English as the Medium of Instruction. There is a major shift around
the world, which is happening in using English as the medium of instruction in
educational institutions and other areas. Most of the academic subjects like
mathematics, science, medicine, geography, etc. are taught in English. The
British Council is currently working with the research center of OUDE or Oxford
University Department of Education to discover the consequences of introducing
EMI in learning, teaching, assessing, and professional development.
Some
of the findings of the research have revealed that – EMI is growing in both
private and public education across the globe in every stage of education.
Also, there is more application of EMI in private education than in public in
all the stages like primary, secondary, and tertiary. EMI is considered to be
the passport to a global world.