Personal Loan Amortization: Understanding Its Impact on Your Repayment

• Most personal loans are amortized, meaning repayment occurs through fixed monthly EMIs.
• Each EMI includes both interest and principal; initially, more goes to interest, then more to principal.
• Amortized loans simplify financial planning with predetermined monthly payments.
• Key aspects include fixed payments, a shifting interest-to-principal ratio, and gradual balance reduction.
• Benefits include easy budgeting and the option for faster repayment through extra payments.