Loans · 4 min read · 21 Jul 2026

How your loan EMI is calculated

The formula behind every EMI, and why most of your early payments go towards interest.

The EMI formula

EMI = P × r × (1 + r)^n ÷ ((1 + r)^n − 1), where P is the loan amount, r is the monthly interest rate and n is the number of months.

Why early EMIs are mostly interest

Interest is charged on the outstanding balance. Early on the balance is highest, so more of each EMI goes to interest. Over time the principal share grows.

Keep reading

Credit score · 6 min read

What is a good credit score in India?

Scores run from 300 to 900. Here is what each range means to a lender, and the number most of them look for.

Credit score · 5 min read

Five habits that improve your credit score

Small, steady habits do more for your score than any quick fix. Start with these five.

Loans · 6 min read

Secured or unsecured loan: which suits you?

A loan against property costs less than a personal loan, but puts an asset on the line. Here is how to choose.