Every month, your repayment covers both interest and principal. In the early years of your loan, a larger portion goes toward interest. Over time, as the principal decreases, more of your payment goes toward repaying the actual loan amount.
Most banks offer flexible repayment plans — for example, you can choose between fixed-rate (same payment amount every month) or variable-rate (payment changes based on market interest rates) loans. Some lenders also allow early repayments, helping you save on total interest costs.
Every month, your repayment covers both interest and principal. In the early years of your loan, a larger portion goes toward interest. Over time, as the principal decreases, more of your payment goes toward repaying the actual loan amount. Most banks offer flexible repayment plans — for example, you can choose between fixed-rate (same payment amount every month) or variable-rate (payment changes based on market interest rates) loans. Some lenders also allow early repayments, helping you save on total interest costs.
How Home Loan Repayments Work
Every month, your repayment covers both interest and principal. In the early years of your loan, a larger portion goes toward interest. Over time, as the principal decreases, more of your payment goes toward repaying the actual loan amount.
Most banks offer flexible repayment plans — for example, you can choose between fixed-rate (same payment amount every month) or variable-rate (payment changes based on market interest rates) loans. Some lenders also allow early repayments, helping you save on total interest costs.
Every month, your repayment covers both interest and principal. In the early years of your loan, a larger portion goes toward interest. Over time, as the principal decreases, more of your payment goes toward repaying the actual loan amount. Most banks offer flexible repayment plans — for example, you can choose between fixed-rate (same payment amount every month) or variable-rate (payment changes based on market interest rates) loans. Some lenders also allow early repayments, helping you save on total interest costs.
Understanding Home Loan Repayment Structures
Your monthly payment is divided between interest and principal. Initially, more goes to interest, but as the principal decreases, more of your payment covers the loan amount. Most banks offer customizable plans, like fixed-rate (consistent payments) or variable-rate (payments fluctuate with market rates). Some also allow extra payments, reducing total interest.