When you get a loan, you must repay it to the lender within a certain period of time. The repayment includes both principal and interest from a predefined number of monthly payments.
Simply put, repaying the loan through a series of scheduled payments, commonly known as EMI, that includes both the principal amount outstanding and the interest component, is known as a repayment program. Also called the amortization table.
The loan repayment schedule is described in the loan repayment schedule shared by the lender with the borrower. This table is usually determined by a loan repayment calculator. The borrower can check how much of the monthly EMI is used to repay the principal or interest, depending on the interest rate and the term of the loan.
Typically, you will notice the following information on your payment schedule:
The payment schedule is an important document for the borrower because: