Loan EMIs look simple:
“Borrow ₹5 lakh. Pay ₹10,230/month for 5 years.” ✅
But that simplicity hides many truths.
Most borrowers don’t realize how EMIs are structured, how much they pay in interest, or how banks profit silently.
In this Vizzve Finance blog, we pull back the curtain on EMIs—and help you regain control over your repayments.
🧾 What Exactly Is an EMI?
EMI = Equated Monthly Instalment
It’s the fixed monthly amount you repay on a loan.
Each EMI includes:
Principal (actual loan amount)
Interest (lender’s charge for lending)
🧠 But here's the twist: In the first few years, 80–90% of your EMI goes toward interest, not the principal.
🕵️♂️ The Hidden Truths About EMIs
1. 🧾 You Pay More Interest Than You Think
Banks calculate interest using the reducing balance method, but the schedule is front-loaded.
That means in Year 1:
You mostly pay interest
Your principal barely reduces
Example:
Loan: ₹6,00,000 @13% for 5 years
EMI: ₹13,700/month
Total Paid: ₹8,22,000
Interest Paid: ₹2,22,000
🤯 That’s ₹2.2L extra, and most of it is paid in the first 24 months!
2. 📆 Missing an EMI = More Than a Late Fee
Late EMI doesn’t just cost a fine—it also:
Lowers your credit score
Adds penal interest
Damages your loan eligibility for future
✅ Vizzve Finance’s EMI Tracker sends you timely reminders so you never miss a due date.
3. 🚫 Banks Don’t Push You to Prepay (But You Should!)
Why? Because they earn more interest the longer you take.
But if you prepay early, you:
Save on interest
Close the loan faster
📱 Use Vizzve’s Prepayment Calculator to see exactly how much you’ll save by paying a little extra every month.
4. 📈 EMIs Lock Up Your Cash Flow
Once committed to an EMI, your monthly budget shrinks.
That means:
Fewer investments
Limited emergency funds
Higher chance of financial stress
✅ Vizzve’s Budgeting Tool helps you visualize EMI impact on your life—and adjust loan size accordingly before applying.
5. 🧮 EMI Calculators Can Be Misleading
Many online EMI calculators only show the monthly payment—not:
Total interest
Interest vs. principal breakup
Impact of early prepayment
Vizzve Finance’s EMI Planner gives you:
Full amortization chart
Interest-to-principal ratio
Suggestions to optimize loan repayment
🔁 How Vizzve Finance Makes You EMI-Smart
Here’s how Vizzve helps you make EMIs work for you, not against you:
✅ 1. EMI Planning Tool
Create a custom EMI plan based on your income, expenses & goals.
✅ 2. Loan Comparison
See total interest cost across loan options.
Pick one that suits you, not just what the bank offers.
✅ 3. Smart Alerts
Get reminders for:
EMI due dates
Best time to prepay
Score impact from delayed payments
✅ 4. Free Prepayment & Restructuring Advice
Vizzve guides you on how to:
Prepay small amounts
Reduce EMI burden
Close loans faster without penalties
🎯 Quick Tips to Beat the EMI Trap
✅ Choose shorter loan tenures to save on interest
✅ Don’t exceed 40% of monthly income as EMI burden
✅ Prepay early, even ₹5K/month helps
✅ Monitor CIBIL score monthly (free with Vizzve)
✅ Avoid overlapping multiple loans
❓ FAQs – EMI Truths & Loan Planning
Q: Should I go for lowest EMI or lowest tenure?
Shorter tenure is better—it saves on interest. Vizzve will show you the trade-off clearly.
Q: Can I lower my EMI mid-loan?
Yes! Options include loan restructuring or balance transfer. Vizzve can assist.
Q: What if I miss 2–3 EMIs?
Your CIBIL score takes a hit. Contact Vizzve for damage control steps and EMI support planning.
🚀 Make Smarter Loan Decisions With Vizzve Finance
Loan EMIs aren’t just fixed payments—they’re a long-term commitment.
Without proper planning, you pay more than you should.
With Vizzve Finance, you:
Plan better
Pay smarter
Save interest
Stay financially free
💡 Don’t fall for EMI myths. Download Vizzve Finance and control your money, your way.
published on 1st July
Publisher : SMITA
www.vizzve.com || www.vizzveservices.com
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.