Ans: This is a complete table of periodic loan payments to be made during the repayment tenure. Amortization schedule shows the principal amount as well as rate of interest that is a part of the EMI paid during the tenor, until the loan is fully repaid.

Ans: One can reduce their loan EMI by either borrowing a lower amount or through longer repayment tenure. While increasing the repayment tenure can reduce the amount to be paid, it will increase the interest amount that is paid over time. However, if the applicant has a high credit score, then he/she can negotiate for a lower rate of interest which can again reduce the amount to be paid as EMI.

Ans: Not paying the EMI for a loan can attract heavy penalty in the form of additional interest on the unpaid amount as well as late payment fees. This will also be mentioned in the credit report of the borrower which will have a detrimental effect on his/her credit score making it difficult for the borrower to avail loans at a later time.

Ans: Customers must note that there are generally two ways to change/reduce the amount paid towards EMI. Either pre-payment must be made on the loan which will reduce the amount to be repaid or the borrower must negotiate with the lender for an extension of the repayment tenure or to reduce the interest imposed.

Ans: The formula for calculating loan EMI is as follows:
E = [P x R x (1+R)^N] /[(1+R)^N-1]
Where P stands for the principal amount that is borrowed
R represents the rate of interest imposed
N is the tenure in number of months