A Loan Repayment Schedule is a detailed breakdown of how a loan is repaid over time. It includes a monthly breakdown of the principal repayment, interest paid, and remaining balance after each payment.

Why is it Useful?

1. Transparency – Helps borrowers understand how much they are paying towards interest vs. principal.
2. Prepayment Planning – Shows how extra payments can reduce the loan duration.
3. Financial Planning – Helps in managing monthly expenses and future payments.

What Does It Include?

A typical Amortization Schedule consists of these columns:

• Month – 1, 2, 3, … (until the loan is fully repaid)
• EMI Amount – Fixed monthly installment
• Principal Paid – Portion of EMI that reduces the loan amount
• Interest Paid – Interest portion of EMI (decreases over time)
• Remaining Balance – Loan balance after each EMI