Understand principal, interest, reducing balance and why the interest portion changes every month.
An EMI combines principal repayment and interest into one fixed monthly payment. Early payments contain more interest because the outstanding loan is larger.
As the balance falls, more of the same EMI goes toward principal. An amortization schedule shows this change month by month.
Compare loan offers using the interest rate, processing fees, tenure and total repayment—not the EMI alone.