Glossary
Core borrowing terms used across LoanCalc Lab.
- EMI (Equated Monthly Instalment)
- A fixed monthly payment on a reducing-balance loan that covers both interest and principal. Common terminology in India and parts of South-East Asia; equivalent to a standard amortising instalment elsewhere.
- APR (Annual Percentage Rate)
- A standardised way of expressing the yearly cost of credit. Headline interest rates may exclude fees; a true-cost view folds fees into an effective rate for comparison.
- Amortisation
- The process of paying off a loan over time through regular payments that gradually reduce the outstanding principal. An amortisation schedule shows the interest/principal split each month.
- Debt snowball
- A payoff strategy that clears the smallest balance first while making minimum payments on other debts, then rolls freed payments into the next smallest balance.
- Debt avalanche
- A payoff strategy that targets the highest interest rate first to minimise total interest, while making minimum payments on other debts.
- Debt consolidation
- Replacing multiple debts with a single loan — often to simplify payments or reduce rate. Fees and a longer term can erase the benefit; always check break-even.
Calculators and articles on LoanCalc Lab are illustrative and not personalised financial advice or a credit offer. Always check the lender’s disclosure for your country before you borrow.