Auto Loan Payment Formula:
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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.
The calculator uses the PMT formula:
Where:
Explanation: The formula accounts for compound interest over the loan term, spreading payments equally over the repayment period.
Details: Accurate loan calculation helps borrowers understand their financial commitment, compare loan offers, and plan their budgets effectively.
Tips: Enter loan amount in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.
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.