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Axis Bank Auto Loan Calculator

Auto Loan Payment Formula:

\[ PMT = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

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%
years

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1. What is the Auto Loan Payment Formula?

The Auto Loan Payment Formula (PMT) calculates the fixed monthly payment required to repay a loan over a specified term, including both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

\[ PMT = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

Where:

Explanation: The formula accounts for compound interest over the loan term, spreading payments equally over the repayment period.

3. Importance of Loan Calculation

Details: Accurate loan calculation helps borrowers understand their financial commitment, compare loan offers, and plan their budgets effectively.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Axis Bank's typical auto loan interest rate?
A: Axis Bank auto loan rates typically range from 8.50% to 12.50% p.a., depending on credit profile and loan term.

Q2: Are there any prepayment charges on Axis Bank auto loans?
A: Axis Bank may charge 2-5% of the principal outstanding for prepayment, depending on loan terms and timing.

Q3: What factors affect auto loan eligibility?
A: Key factors include income, credit score, employment stability, existing obligations, and vehicle value.

Q4: What is the maximum loan tenure available?
A: Axis Bank typically offers auto loans for up to 7 years, depending on vehicle type and borrower profile.

Q5: Does this include insurance and other charges?
A: No, this calculates only the principal and interest components. Additional charges may apply for insurance, processing fees, etc.

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