Personal loans feature fixed monthly payments over time

When you take out a personal loan, it can help you with emergencies, large purchases, or debt relief. Most personal loans are repaid through a method called amortisation, which means you pay a fixed amount each month. This payment includes both interest and the principal amount you borrowed. At the beginning of the loan, most of your payment goes toward interest. Over time, as you continue to pay, a larger portion of each payment goes toward reducing the amount you owe. This makes it easier to manage your finances since you know exactly what you need to pay each month. Amortised loans, including personal loans, home loans, and car loans, have a structured repayment plan. When you borrow money, the total amount is divided into equal monthly payments. This ensures that by the end of the loan term, your loan is fully paid off. To illustrate, think of borrowing a box of chocolates from a friend. At first, you return mostly extra chocolates as a thank you (interest), while only a few go toward the original box (principal). As time goes on, you give back fewer extra chocolates and more of the original ones. Eventually, you return everything you borrowed plus the extra chocolates. Understanding loan amortisation helps you manage your budget more effectively. This structure allows you to plan your payments and steadily decrease your debt. If you're considering a personal loan, platforms like Moneycontrol can help you find options up to Rs 50 lakhs, with interest rates starting at 10.5% per year, all through a fully digital application process.