A friendly primer

How EMI loans work.

An EMI — Equated Monthly Instalment — is the same, predictable payment you make every month until a loan is fully repaid. No surprises, no balloon at the end. Move the sliders below to see how it works.

Same payment, every month

You and the lender agree on an amount, a rate and a term. The EMI formula spreads it into equal monthly payments.

Interest first, principal later

Early payments cover more interest than principal. As the balance shrinks, more of each payment chips away at what you borrowed.

Fully paid by the end

By the last EMI, both the interest and the principal are zero. No surprise balances, no equity given up.

Try it live

Toggle the sliders. Watch it change.

Loan amount

€6,000

€1,000€20,000

Interest rate

14%

5%20%

Term

12 months

3 mo24 mo

Monthly EMI

€539

Total interest

€465

Total repayment

€6,465

Where your repayment goes

Principal · 93%Interest · 7%

Month by month

Watch interest give way to principal.

Each bar is one monthly EMI. The dark portion is what you actually pay down (principal); the red portion is interest. Notice how the red shrinks as the months go by.

Amount

€6,000

€1k€20k

Rate

14%

5%20%

Term

12 mo

324

Interest Principal

Good to know.

Is it the same as APR?: The interest rate you see in the calculator is the annual rate. The EMI simply spreads that annual cost across each month of the term.
Can I repay early?: Yes. Paying early reduces the outstanding principal, which means less interest over the remaining months.
Do you take equity?: Never. An EMI loan is repaid in cash — your ownership of your company stays exactly where it is.

Try the loan calculator