What is EMI and How does One Calculate It?

Being a renowned term, many people are still unaware of the significance and the meaning of EMI. Equated Monthly Instalment (EMI) is a term which each individual gets associated to when he/she plans to take a loan or issue a credit card. Although, the word might sound a little one but has a broader aspect when it comes to practical life. However, if not known right, the term can turn into a nightmare.