The Home Loan EMI is set on the loan amount, the rate of interest and the loan tenure. Any one of these variables can inflate or deflate your EMI, so spend time in setting your EMI. Creditfina consultant would gladly help you make an informed decision here. Your EMI comprises an interest component and a principal component. A bank will first try to earn back its interest on the outstanding. As you proceed through the loan tenure, the interest component will decrease in favour of the principal component of your EMI.