How much monthly installment will you have to pay in a 1 lakh loan?

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How much monthly installment

Suppose you have taken a loan of Rs 1 lakh for 5 years. ₹2327 monthly installment with 14% interest. Which most financial institutions provide you.

2024, March month – Total amount ₹1,00,000

With 14% interest, you will have to pay ₹1,166. This interest is whatever loan you have taken from financial institutions along with interest. Those financial institutions will get this money. Right now your monthly installment is ₹2327. The amount of interest you have paid and the amount of loan you have taken is ₹ 1,00,000. Whatever the reduction is, your loan amount will be ₹98,840.

Meaning, the monthly installment (₹2327) – interest (₹1,166) = ₹1,161 is the amount you have paid.

2024, April Month – Total Amount ₹98,840

The more you reduce the principal amount, the less will be the interest amount. Now your interest will be ₹1,153 with 14% interest. Now let’s see how much interest you will have to pay in a year.

2024 – 2025 First year of interest –

Month	How much interest (₹)-	Principal Amount (₹)-
March	1,166	1,00,000
April	1,153	98,840
May	1,139	97,666
June	1,125	96,479
July	1,111	95,278
August	1,097	94,062
September	1,083	92,833
October	1,068	91,589
November	1,053	90,331
December	1,039	89,058
January	1,023	87,770
February	1,008	86,467
Total –	13,065 Interest	13,533 Total

So far you have reduced ₹13,533 to ₹1,00,000, totaling ₹86,467. You have paid ₹13,065 in interest so far. Accordingly, you paid ₹ 1088.75 interest every month.

2025 – 2026 Second Year of Interest –

Month	How much interest (₹)-	Principal Amount (₹)-
March	993	85,149
April	977	83,816
May	962	82,467
June	946	81,102
July	930	79,721
August	913	78,325
September	897	76,912
October	880	75,482
November	863	74,036
December	846	72,573
January	829	71,093
February	811	69,565
Total –	10,787 Interest	15,584

Till now it has given interest of ₹ 23,852 in its 2 years.

2026 – 2027 Third Year of Interest –

Month	How much interest (₹)-	Principal Amount (₹)-
March	794	68,080
April	776	66,548
May	758	64,997
June	740	63,429
July	721	61,842
August	702	60,237
September	683	58,612
October	664	56,969
November	645	55,307
December	625	53,626
January	605	51,924
February	585	50,203
Total –	8,298	17,877

So far you have paid ₹ 32,150 interest in 3 years. So far you have paid back ₹50,203 or amortized the loan.

2027 – 2028 Fourth Year of Interest –

Month	How much interest (₹)-	Principal Amount (₹)-
March	565	48,462
April	544	46,701
May	524	44,919
June	503	43,116
July	481	41,292
August	460	39,447
September	438	37,581
October	416	35,692
November	394	33,782
December	371	31,849
January	348	29,894
February	325	27,916
Total –	5369	20,546

Till now you have paid interest of ₹ 37,519 in 4 years.

2028 – 2029 Fifth Year of Interest –

Month	How much interest (₹)-	Principal Amount (₹)-
March	302	25,915
April	278	23,890
May	254	21,842
June	230	19,770
July	206	17,674
August	181	15,553
September	156	13,408
October	131	11,237
November	105	9,042
December	79	6,820
January	53	4573
February	26	2,299
Total–	2001

Now the total interest for 5 years will be – ₹ 39,520 and the processing fee will be ₹ 1500 (1.5%). Which many financial institutions charge you. Overall, you will paid almost more than that but you will have to pay the principal amount of ₹ 41,020. First-year – ₹13,065 Second year – ₹10,787 Third year – ₹8,298 Fourth year – ₹5369 Fifth year – ₹2001.

How much do you pay actually?

2024 – 2025 First year of payment –

Month	Principal Payment(₹-)	Total payment (₹-)
March	1,160	2,327
April	1,173	4,654
May	1,187	6,981
June	1,201	9,308
July	1,215	11,635
August	1,229	13,962
September	1,243	16,289
October	1,258	18,616
November	1,272	20,943
December	1,287	23,270
January	1,302	25,597
February	1,318	27,924
Total –	14,845	27,924

2025 – 2026 Second year of payment –

Month	Principal Payment (₹-)	Total payment (₹-)
March	1,333	30,251
April	1,348	32,578
May	1,364	34,905
June	1,380	37,232
July	1,396	39,559
August	1,413	41,886
September	1,429	44,213
October	1,446	46,540
November	1,463	48,867
December	1,480	51,194
January	1,497	53,521
February	1,514	55,848
Total –	17,063	55,848

2026 – 2027 Third year of payment –

Month	Principal Payment (₹-)	Total payment (₹-)
March	1532	58,175
April	1550	60,502
May	1568	62,829
June	1586	65,156
July	1605	67,483
August	1624	69,810
September	1643	72,137
October	1662	74,464
November	1681	76,791
December	1701	79,118
January	1721	81,445
February	1741	83,772
कुल –	19,614	83,772

2027 – 2028 Fourth year of payment –

Month	Principal Payment (₹-)	Total payment (₹-)
March	1761	86,099
April	1781	88,426
May	1802	90,753
June	1823	93,080
July	1845	95,407
August	1866	97,734
September	1888	1,00,061
October	1910	1,02,388
November	1932	1,04,715
December	1955	1,07,042
January	1978	1,09,369
February	2001	1,11,696
Total –	22,542	1,11,696

If you think about it, financial institutions have taken Rs 1 lakh from you in September 2028.

2028 – 2029 Fifth Year of Payment –

Month	Principal Amount (₹-)	Total Payment (₹-)
March	2024	1,14,023
April	2048	1,16,350
May	2072	1,18,677
June	2096	1,21,004
July	2120	1,23,331
August	2145	1,25,658
September	2170	1,27,985
October	2195	1,30,312
November	2221	1,32,639
December	2247	1,34,966
January	2273	1,37,293
Febuary	2300	1,39,620
Total –	25,911	–