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Vijay Bhalothia & AssociatesChartered Accountants

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The monthly instalment on a reducing-balance loan, and what the whole thing costs by the end. Useful when comparing a term loan offer against the project it is funding.

Monthly instalment

₹22,493

over 240 months (20 years)

Principal₹25,00,000
Total interest₹28,98,356
Total payable₹53,98,356
Principal 46%Interest 54%

How to read this

Uses the standard reducing-balance amortisation formula on a fixed rate for the full tenure. Processing fees, insurance, prepayment and any rate reset during the term are not included.

For a business loan, the ratio that lenders actually test is debt service coverage, not the instalment alone — we prepare that as part of a project report.

Everything is computed in your browser — nothing you type leaves this page. For a computation on your actual facts, talk to us.

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A notice to answer, an audit to plan, a deal to price, or a compliance calendar that has got away from you — a short conversation usually tells us both whether we fit.

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