It means that bank is charging a flat rate of interest at 10 per cent. So, always ask the method of computation when presented with a rate of interest. The more frequently computed the better it is for you. But that is not all. It's not only EMI there are other factors also which determine the effective cost of loan.
Lenders normally charge some upfront fees.
For determining the actual cost of loan you must consider them as they increase the cost of loan considerably. Apart from these upfront fees, also look at the prepayment clause of the loan agreement. Most of the lenders charge 2 per cent penalty in case of prepayment which again affects the cost of Loan. But then you have the nationalised banks, who don't charge any prepayment fee.