Decoding Your Loan Amortization Schedule

An amortization schedule is a table that details each periodic payment on a loan. It shows you how much of each EMI goes towards interest and how much goes towards the principal, along with the outstanding loan balance after each payment.

The most shocking revelation for most borrowers is seeing how interest-heavy the initial years are. By visualizing this, you can better appreciate the impact of making prepayments early in your tenure, as they have a much greater effect on reducing the total interest paid.