Know exactly how much your monthly installments will be and how your loan balance reduces over the tenure.
Yearly breakup of your loan repayment.
| Year | Principal Paid | Interest Paid | Total Payment | Balance Amount |
|---|
Equated Monthly Installment (EMI) is the fixed amount you pay to a bank or financial institution every month until your loan is fully repaid. It consists of both principal and interest components.
Where:
For a loan of ₹25 Lakhs at 8.5% p.a. interest for 20 years, your EMI would be ₹21,695. Over the tenure, you will pay a total of ₹27,06,876 in interest.
You can reduce your EMI by making a higher down payment, choosing a longer loan tenure, or negotiating for a lower interest rate. Pre-paying a portion of the principal also helps in the long run.
Yes, significantly. A longer tenure reduces your monthly EMI but increases the total interest you pay over the life of the loan. A shorter tenure is always better if you can afford the higher EMI.