Loan Amortisation Schedule: How to Read It Month by Month
Published 13 October 2026 · 6 min read · Clean EMI Editorial
An amortisation schedule lists every EMI of a loan and splits each one into interest and principal. Most borrowers look only at the monthly figure, but the schedule shows where the money goes over time. This guide explains each column and uses one example, a ₹30 lakh loan over 15 years, to show why the early months are mostly interest. Keep the schedule with your loan papers and compare it with your statements at least once a year. If a statement shows a balance higher than the schedule, ask the bank to explain the difference before it grows. A schedule is also a planning tool: it shows how much principal you will have cleared by a given year, which matters if you plan to sell the property or move the loan later.
Part of the Home Loan guide series.
The columns explained
- Instalment number: the month count from the first EMI.
- Opening balance: the principal still owed at the start of the month.
- EMI: the fixed monthly payment.
- Interest: the opening balance multiplied by the monthly rate.
- Principal: the EMI minus the interest. This is the part that reduces the loan.
- Closing balance: the opening balance minus the principal paid.
Worked example: ₹30 lakh over 15 years
The figures below use an illustrative rate of 8.5% p.a., which is not a bank quote. The EMI is ₹29,542 a month for 180 months.
- Month 1: interest ₹21,250, principal ₹8,292, closing balance ₹29,91,708.
- Month 2: interest ₹21,191, principal ₹8,351, closing balance ₹29,83,357.
- Month 3: interest ₹21,132, principal ₹8,410, closing balance ₹29,74,947.
- Month 60: closing balance ₹23,82,709.
In month 1, about 72% of the EMI goes to interest. The principal part grows slowly, month after month.
What the first five years show
Over the first 60 months, the borrower pays about ₹11,55,241 in interest and reduces the principal by about ₹6,17,291. Only after that does the balance fall faster. This pattern is why a prepayment made early in the loan usually has a larger effect than the same amount paid near the end. The daily balance interest explainer covers how the interest base can move between EMI dates.
How to use the schedule
- Ask the bank for the full schedule when you receive the sanction, not only the first few months.
- Check that the final closing balance reaches zero at the end of the tenure.
- Compare the schedule with your own calculation from the EMI calculator.
- If the rate changes, ask for a revised schedule, because the split between interest and principal changes too.
Read it with the bank’s terms
The schedule shows the arithmetic, but the bank’s loan agreement sets the terms that apply, including how changes in rate are handled and what charges apply to prepayment. The general home loan process is set out on the home loan page, and the bank’s profile is at Bank of Maharashtra. The final decision rests with the lending bank.
Frequently Asked Questions
Why is the interest part so large in the first EMIs?
Interest is charged on the full outstanding balance. Early in the loan that balance is highest, so the interest part of each EMI is highest too.
Does the EMI change in the schedule?
For a fixed EMI loan the amount stays the same, while the split between interest and principal shifts each month. If the rate changes, the bank may revise the EMI or the tenure.
Where can I get the schedule for my loan?
Ask the lending bank for it. Check that the opening and closing balances match your loan statements each year.
Useful free tools
- Free Credit Analyzer — Upload your CIBIL report and see which loans you may be eligible for, with an indicative EMI.
- Check my Loan Eligibility — Answer a few questions and see how your application would be routed to a PSU bank.
- Home Loan Balance Transfer Calculator — Compare your current EMI with a lower-rate loan over the same remaining tenure.
- Credit Score Enhancer — Practical steps to improve your CIBIL score before you apply for a loan.
Ready to check your eligibility?
No fee to apply. CIBIL score of 700 or above required.