EMI
The mechanics behind the monthly figure: how it is derived, what it is made of, and where the cost hides.
- How Is EMI Calculated?How Indian lenders work out your monthly instalment, why the interest portion shrinks every month, and what actually changes the number.
- The EMI Formula, Explained Line by LineThe reducing-balance EMI formula Indian lenders use, what each symbol means, how to compute it yourself, and how to handle the 0% case.
- Reducing Balance vs Flat RateWhy a flat 10% and a reducing-balance 10% are not the same loan, how much more the flat structure costs, and where you meet it in India.
- How to Read an Amortisation ScheduleWhat each column of a loan schedule means, how to spot the month your loan turns the corner, and how to check your bank's statement against it.
Reviewed by Pradipta Ray, Editor · Last updated