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Equated Monthly Installment (EMI)
Definition
A fixed payment amount made by a borrower to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over a specified number of years, the loan is paid off in full.
The Arivo Context
Before committing to a new EMI (like buying a car), Arivo projects how that fixed monthly payment will impact your ability to save and build an emergency fund over the next 3 to 5 years.