Amortization Schedule

An Amortization Schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.

In the early years of a loan, a large portion of your EMI goes towards paying off the interest. As time progresses, the interest component decreases, and the principal component increases.

• Track Progress: See exactly how much of the loan balance is remaining after any number of payments.
• Tax Planning: For home loans, the principal and interest components have different tax benefits. This schedule helps you estimate those amounts for each financial year.
• Prepayment Planning: Understanding the interest burden can help you decide if making a prepayment to reduce the principal is a wise financial move.