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EMI, or Equated Monthly Installment, is the fixed payment amount made by a borrower to a lender at a specified date each month. EMIs are used to pay off both interest and principal every month, ensuring the loan is paid off in full over a specified tenure.

EMI is calculated using the formula: \[ \text{EMI} = \frac{P \times R \times (1+R)^N}{(1+R)^N - 1} \] where \( P \) is the principal loan amount, \( R \) is the monthly interest rate, and \( N \) is the number of monthly installments.

Typically, the EMI amount remains constant throughout the loan tenure. However, it can vary if there's a change in the interest rate (particularly for floating rate loans) or if you've made additional payments towards the principal.

Missing an EMI payment can result in penalties, increased interest rates, and a potential negative impact on your credit score. It's crucial to ensure timely EMI payments to avoid these consequences.

Yes, most loans allow for early repayment. However, some loans might have prepayment penalties. It's essential to check with your lender or read your loan agreement to understand any charges or conditions related to early repayment.