📘 How this calculation works
- Tenure Split: Total loan tenure is split into 75% principal repayment period and 25% interest-only period.
- Principal EMI: Loan amount is divided equally across the principal repayment months.
- Interest Calculation: During principal repayment months, interest is calculated monthly on the outstanding balance at
annualRate / 12.
- Total Interest: All monthly interest values are added together.
- Interest EMI: This total interest is then spread equally over the remaining (25%) interest-only months.
- Total Repayment: Loan Amount + Total Interest.
⚠️ Note: This is a custom method, not the standard EMI formula. It assumes equal principal payments first, then equal interest EMIs later.
