Confusing Loan Repayment

[m.younisbt]

I took an insta Jumbo loan online from HDFC of 500000 for 5 years with Interest of 13.80% per annum.
During apply it showed total 699197 to be paid back through 11582 EMI, same shown in EMI repayment schedule PDF.
But when I calculate Interest of 13.80% per annum = 69000*5 years =345000
Loan amount 500000+345000= 845000

I am confused why it's showing Total amount to be paid by the
borrower 699197.

Do anyone have knowledge about this?

 

[bhushan0101]

I took an insta Jumbo loan online from HDFC of 500000 for 5 years with Interest of 13.80% per annum.
During apply it showed total 699197 to be paid back through 11582 EMI, same shown in EMI repayment schedule PDF.
But when I calculate Interest of 13.80% per annum = 69000*5 years =345000
Loan amount 500000+345000= 845000

I am confused why it's showing Total amount to be paid by the
borrower 699197.

Do anyone have knowledge about this?

The calculation of interest on reducing balance every month. You calculated interest on total outstanding balance for 5 years which is incorrect.

 

[D₹V]

The calculation of interest on reducing balance every month. You calculated interest on total outstanding balance for 5 years which is incorrect.View attachment 41308

@ashwink should be marked as solution 😜