Amortization is the process of spreading out a loan into a series of fixed payments over time. For a mortgage, each monthly payment consists of both a principal portion and an interest portion. In the early years of the loan, a larger part of your EMI goes towards interest. As you continue to pay, the principal portion gradually increases, and the interest portion decreases.

• Transfer of Property Act, 1882: This act governs mortgages of immovable property in India.
• Home Loan Regulation: Home loans are regulated by the Reserve Bank of India (RBI) and the National Housing Bank (NHB). They set guidelines for lending rates, loan-to-value ratios, and other terms.
• Fixed vs. Floating Rates: Most home loans in India are on a floating rate basis, linked to an external benchmark like the RBI’s repo rate. This calculator assumes a fixed rate for the entire tenure for simplicity.