EMI (Equated Monthly Installment) is a fixed amount that a borrower pays to the lender on a monthly basis. It consists of the principal amount and the interest on your loan.

EMI is calculated using the formula: EMI = P × r × (1 + r)^n / [(1 + r)^n - 1], where P is principal amount, r is interest rate per month, and n is total number of months.

The main factors affecting EMI are loan amount, interest rate, and loan tenure. A higher loan amount or interest rate increases EMI, while a longer tenure reduces monthly payments but increases total interest.

Yes, most loans can be prepaid. However, some lenders may charge a prepayment penalty. It's advisable to check the terms and conditions regarding prepayment before taking a loan.

Missing EMI payments can result in late payment charges, negative impact on credit score, and potential legal action by the lender. It's important to make payments on time or communicate with the lender if facing difficulties.