An amortization schedule is a detailed breakdown of your business loan payments, showcasing how much of each payment goes toward interest and principal.
If you borrow Rs. 40 lakh at an interest rate of 13% for a period of 7 years, the following will be your amortization schedule.
| Month |
Principal (Rs.) |
Interest (Rs.) |
Principal + Interest (Rs.) |
Balance to be Paid (Rs.) |
| 1 |
29435 |
43333 |
72768 |
3970565 |
| 2 |
29753 |
43014 |
72768 |
3940812 |
| 3 |
30076 |
42692 |
72768 |
3910736 |
| 4 |
30402 |
42366 |
72768 |
3880335 |
| 5 |
30731 |
42037 |
72768 |
3849604 |
| 6 |
31064 |
41704 |
72768 |
3818540 |
| 7 |
31400 |
41368 |
72768 |
3787140 |
| 8 |
31741 |
41027 |
72768 |
3755399 |
| 9 |
32084 |
40683 |
72768 |
3723315 |
| 10 |
32432 |
40336 |
72768 |
3690883 |
| 11 |
32783 |
39985 |
72768 |
3658100 |
| 12 |
33138 |
39629 |
72768 |
3624961 |
Note: This schedule presents an illustrative breakdown of the first 12 instalments out of the total 84-month loan tenure. The interest and principal composition will continue to adjust progressively over the remaining tenure.
EMI Sample Calculation
Provided below is a sample EMI calculation for
- Loan Amount: Rs. 10,00,000
- Interest Rate: 12% per annum (reducing balance)
- Tenure: Varying
