Reducing balance, not flat rate
Honest lenders charge interest on the shrinking balance — that is what this tool computes. A "flat rate" quote looks cheaper but charges interest on the full original amount every month; always compare using the reducing-balance EMI.
Why tenure matters more than rate
Stretching a loan from 3 to 7 years can double the total interest even at a lower rate. A shorter tenure is the cheapest way to borrow — if the EMI fits your budget.
Extra payments
Paying even a little extra each month attacks the principal directly and can shave years off a loan, because less principal means less interest next month.
Frequently Asked Questions
What is EMI?
Equated Monthly Instalment — the same fixed payment every month, split between interest and principal, that clears the loan exactly at the end of the tenure.
Why is the EMI higher than principal divided by months?
Because of interest. The "interest share" row shows exactly how much of your total payment is interest.
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