Generate a complete month-by-month loan repayment schedule showing principal paid, interest paid, and remaining balance for every payment.
Amortization is the process of paying off a loan over time through regular payments. Each payment covers both principal (the loan amount) and interest. In early months, most of your payment goes toward interest. Over time, the principal portion increases.
Making additional principal payments early in the loan term dramatically reduces total interest paid because interest is calculated on the remaining balance. Even one extra EMI per year can save lakhs on a home loan.