Complete year-by-year breakdown of your EMI — see exactly how much goes to principal vs interest every year.
| Year | Opening Balance | Total EMI Paid | Principal Paid | Interest Paid | Closing Balance | Progress |
|---|
A loan amortisation schedule shows exactly how each EMI payment is split between principal and interest over the entire loan tenure. In the early years, the vast majority of your EMI goes toward interest — not reducing the outstanding balance. Understanding this is crucial for prepayment decisions.
It is a month-by-month (or year-by-year) breakdown of a loan showing: EMI amount, interest portion, principal portion, and closing balance. It reveals how the loan balance reduces over time — slowly at first, faster later.
Because EMI is fixed but outstanding principal is highest at the start, so interest charges are highest in early years. As principal reduces, interest charge falls — the same EMI then pays off more principal each month.
When your bank changes the floating interest rate, either your tenure adjusts (most common) or your EMI changes. Request a fresh amortisation schedule from your bank after any rate revision to track your actual outstanding balance.
Flat rate: interest calculated on original principal throughout tenure. Reducing balance rate: interest calculated on outstanding balance (which reduces each month). A flat rate of 12% = approximately 21–22% reducing balance rate. Personal loans advertised at 'flat rates' are much more expensive than they appear.
In the first half of the loan (Years 1–10 for a 20-year loan) — when outstanding balance is highest and total interest yet to be paid is maximum. A 0.5% rate reduction on ₹40L outstanding saves ₹3.5–4L over remaining tenure.
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