I have Rs 12-lakh house loan, which I took in 2015. How are the EMI figures calculated?
Bindu Naidu, Hyderabad
An EMI is a mixture of principal repayment and interest. Typically, interest is higher in the initial years of the tenure of a loan. When someone takes a loan from a bank, it gives the amortisation break-up details (that is, the break-up of each EMI into the principal and interest portions) for the entire period of the loan. If there is any change in this, the bank informs the borrower of the new breakup. There are many amortisation calculators available on the Internet which you can use. You can also approach the bank to send you a copy of the break-up.
