How Loan Repayment Works

Quick guide to EMIs & smart payoff tips.

Fixed monthly payment = Principal + Interest.

What Is an EMI?

Interest vs Principal

Early EMIs: more interest. Later EMIs: more principal

How Interest Works

Calculated on outstanding balance, not full loan.

Repayment Options

Pay via auto-debit, UPI, or bank transfer.

Extra payments reduce interest & tenure.

Prepayment

Missed EMIs

Leads to penalties + lower credit score.

Smart Tip

Use an EMI calculator & choose affordable tenure.

How Loan Repayment Works: Everything You Should Know

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