Each EMI repays a neighborhood of principal i.e. the borrowed amount and therefore the interest due on the borrowed amount. The proportion of every EMI utilised for repayment of principal and interest, however, varies over time.
Banks and financial institutions, generally , calculate EMI through a standard mathematical formula. Thus, for a given loan amount, tenure and rate of interest , the EMI calculated and therefore the amortisation schedule offered by banks and Non-Banking Financial Companies (NBFCs) will typically be similar. This suggests that the pattern of reduction of principal amount through payment of every EMI will typically follow a similar trend across all financial institutions.
It is a well known incontrovertible fact that the initial EMIs contribute more towards payment of interest due as compared to the principal amount. However, during the tenure of the loan, subsequent EMIs contribute more towards repayment of principal amount as compared to previous EMIs.