# EMI

CEFR C1 · Noun

Source: https://englishreference.com/word/emi
Updated: 2026-05-10

## Definition

Stands for Equated Monthly Installment. A plan where you pay for something expensive by giving a small amount of money every month. It is common for buying things like cars, phones, or furniture.

For teachers: Abbreviation for Equated Monthly Installment. A fixed payment amount made by a borrower to a lender at a specified date each calendar month. Used to pay off both interest and principal over a set number of years so that the loan is paid in full.

## Examples

- I pay my car EMI on the first of every month.
- Before signing the loan agreement, make sure the monthly EMI fits comfortably within your household budget.
- While a lower interest rate reduces the total cost of borrowing, extending the loan tenure can significantly lower the monthly EMI at the expense of higher cumulative interest payments.

## Usage notes

- Commonly used in Indian and Southeast Asian English; in British or American English, 'monthly installment' or 'monthly payment' is more frequent.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.