EMI stands for Equated Monthly Installment — the fixed amount you pay every month until a loan is fully repaid. It's the same number every month, but the mix inside it changes: early payments are mostly interest, later ones are mostly principal.
The formula
EMI = P × r × (1 + r)ⁿ / ((1 + r)ⁿ − 1), where P is the loan amount (principal), r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the number of monthly installments (tenure in months).
A worked example
Say you borrow ₹50,000 for 12 months at Kashtpe's fixed 6.9% p.a. rate. The monthly rate r = 6.9 ÷ 12 ÷ 100 = 0.00575. Plugging into the formula gives an EMI of roughly ₹4,324 per month — meaning you'd repay about ₹51,888 in total over the year, of which about ₹1,888 is interest.
Stretch the same ₹50,000 to 24 months instead, and the EMI drops to around ₹2,235 per month — but total interest paid roughly doubles, since you're borrowing the money for twice as long.
What actually moves your EMI
Three things, and only three: how much you borrow, how long you take to repay it, and the interest rate. Kashtpe's rate is fixed at 6.9% p.a. for every applicant, so for you, EMI planning really only comes down to choosing an amount and a tenure that fit your monthly budget — you can try different combinations on our EMI calculator before you apply.