Axis Bank Business Loan Calculator Amortization Schedule

Loan Payment Formula:

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

Monthly Payment (PMT):

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1. What is the Axis Bank Business Loan Calculator?

The Axis Bank Business Loan Calculator helps business owners estimate their monthly loan payments and view a complete amortization schedule. It uses the standard loan payment formula to calculate fixed monthly payments for Axis Bank business loans.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

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

Where:

\( P \) — Principal loan amount (INR)
\( r \) — Monthly interest rate (annual rate divided by 12)
\( n \) — Total number of payments (loan term in months)
\( PMT \) — Monthly payment amount (INR)

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, including both principal and interest components.

3. Importance of Amortization Schedule

Details: The amortization schedule shows how each payment is split between principal and interest over the life of the loan. This helps business owners understand how much they're paying in interest and how quickly they're building equity.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (as offered by Axis Bank), and loan term in years. The calculator will display your monthly payment and complete repayment schedule.

5. Frequently Asked Questions (FAQ)

Q1: What types of business loans does Axis Bank offer?
A: Axis Bank offers various business loans including working capital loans, term loans, machinery loans, and business loan against property.

Q2: What is the typical interest rate for Axis Bank business loans?
A: Interest rates vary but typically range from 10% to 18% per annum depending on loan type, amount, tenure, and borrower's credit profile.

Q3: Are there any prepayment charges?
A: Axis Bank may charge prepayment penalties depending on loan type and terms. Check with your loan officer for specific details.

Q4: What is the maximum loan term available?
A: Business loan terms typically range from 1 to 15 years, depending on the loan purpose and amount.

Q5: Does this calculator account for processing fees?
A: No, this calculator shows principal and interest only. Processing fees (typically 1-2% of loan amount) would be additional.