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Amortization Kya Hai? — Matlab, Definition & Example
Definition
Amortization loan ko regular EMI payments se time ke saath repay karne ki process hai. Starting mein interest zyada hota hai, baad mein principal zyada ho jaata hai.
💡 Real Example
On a ₹50L home loan at 8.5%/20 years, EMI is ₹43,391. In month 1: ₹35,417 is interest and ₹7,974 is principal. By year 15: ₹15,000 is interest and ₹28,391 is principal.
🇬🇧 English Mein (Amortization)
Amortization is the process of paying off a loan through regular EMI payments over time. Each EMI consists of principal and interest components. In early years, interest component is higher; over time, principal component increases. Amortization schedule shows this breakdown for each EMI.
❓ Common Questions
Amortization kya hai simple words mein?
Amortization loan ko regular EMI payments se time ke saath repay karne ki process hai. Starting mein interest zyada hota hai, baad mein principal zyada ho jaata hai.
Amortization ka ek example do?
On a ₹50L home loan at 8.5%/20 years, EMI is ₹43,391. In month 1: ₹35,417 is interest and ₹7,974 is principal. By year 15: ₹15,000 is interest and ₹28,391 is principal.
Amortization ko English mein kya kehte hain?
English mein ise Amortization kehte hain. Amortization is the process of paying off a loan through regular EMI payments over time. Each EMI consists of principal and interest components. In early years, interest component is higher; over time