Loans
A loan is money you borrow and repay with interest, usually in monthly instalments called EMIs. The total cost depends on the interest rate, the tenure, any fees, and whether the rate is fixed or floating.
Updated: · For education only. Not investment advice.
Tools for this topic
Guides in this section
- Interest rate mechanicsComing soon
- APR and feesComing soon
- EMI and amortisation→
- Fixed and floating ratesComing soon
- Reading a credit reportComing soon
Frequently asked questions
What is an EMI?
EMI (Equated Monthly Instalment) is the fixed amount you pay every month to repay a loan. Each EMI has a principal part and an interest part, and in the early months the interest share is larger.
What is the difference between fixed and floating interest rates?
A fixed rate stays the same for the agreed period. A floating rate can change when the benchmark rate changes, which can raise or lower your EMI or your loan tenure.
What is a credit score?
A credit score is a number, commonly between 300 and 900 in India, that credit bureaus calculate from your repayment history and credit use. Lenders look at it when deciding on a loan, but it is not the only factor.
This page is general education. It does not recommend any lender or loan.