The EMI stays fixed, but its composition doesn't
For a ₹30 lakh loan at 8.5% over 20 years (240 months), the EMI is ₹26,034.70 every single month for the full tenure. What changes is how much of that fixed amount goes toward interest versus principal.
Year 1, interest-heavy
In the first year, ₹2,52,709.49 of the total EMIs paid goes to interest, and only ₹59,706.88 reduces the principal — interest makes up roughly 81% of every rupee paid that year, because the outstanding balance (and so the interest charged on it) is still close to the full ₹30 lakh.
Year 15, the balance has flipped
By year 15, the split has reversed: ₹1,95,439.80 goes to principal and only ₹1,16,976.57 to interest — principal now makes up the larger share, because years of payments have already shrunk the outstanding balance substantially.
The final year, almost entirely principal
In year 20, the last year of the loan, ₹2,98,495.32 goes to principal against just ₹13,921.04 in interest — over 95% principal. This progression from interest-heavy to principal-heavy is a structural feature of every reducing-balance loan, not something specific to this particular loan amount or rate.