ANUNAYNAMA / MONEY EXPLAINED
A smaller EMI does not always mean a cheaper loan
Hindi audio and Hindi subtitles · AI-assisted narration and visuals
The explanation
For a hypothetical ₹1 lakh loan at 12% a year, monthly reducing balance and zero fees, a 12-month term gives an EMI of ₹8,884.88 and total interest of ₹6,618.55. A 24-month term gives an EMI of ₹4,707.35 and total interest of ₹12,976.33. Compare total repayment and tenure as well as the monthly instalment.
Educational examples only. Check the rules currently applicable to your bank and product before acting.
Sources & further reading
Source review: 2 November 2026. Rules and product terms can change.
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