How an EMI is really built

EMI = P x r x (1+r)^n / ((1+r)^n – 1). The only number most of us see is the monthly debit. Hidden inside it is a sliding mix: early instalments are mostly interest, later ones are mostly principal.

That mix is why a lump-sum prepayment in year three of a 20-year loan can save more interest than the same rupee in year twelve.

Open the amortization table, then the prepayment calculator. Keep the EMI, cut the tenure, unless cash flow is the actual problem.