1. What is the Monthly Payment Formula?

The monthly payment formula calculates the fixed payment amount required each month to repay a business loan over its term, including interest. This is the standard formula used by Axis Bank and most financial institutions.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (term in years × 12)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the life of the loan, calculating a fixed payment that covers both principal and interest each month.

3. Importance of Monthly Payment Calculation

Details: Knowing your exact monthly payment helps in business financial planning, cash flow management, and comparing different loan options from Axis Bank.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (as offered by Axis Bank), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include Axis Bank's processing fees?
A: No, this calculation only includes principal and interest. Processing fees and other charges would be additional.

Q2: What's the typical interest rate for Axis Bank business loans?
A: Rates vary but typically range between 10-18% per annum depending on loan amount, term, and business profile.

Q3: Can I calculate payments for different terms?
A: Yes, simply change the loan term to see how it affects your monthly payment.

Q4: How accurate is this calculator?
A: This provides a close estimate, but actual payments may vary slightly based on Axis Bank's specific rounding methods.

Q5: Does this work for other types of loans?
A: The same formula applies to most term loans, but specific products may have different calculation methods.