Any loan, whether for a house, a personal or vehicle purchase, is frequently described by terms like the principal, rate of interest, and tenure. When you take out a loan for whatever reason, you must pay it back in equal monthly instalments, or EMIs. An EMI is a set sum of money that you must consistently pay to your lender in order to pay back the loan. On a set date each month, this money is often disbursed through check or internet transfer.