1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount made by a borrower to a lender at a specified date each calendar month. For home loans, EMIs are used to pay off both principal and interest each month.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment

Explanation: The formula calculates the fixed payment amount that completely pays off the loan (principal + interest) over the loan term.

3. About Axis Bank Home Loans

Details: Axis Bank offers home loans starting at 6.90% p.a. interest rate with flexible repayment tenures up to 30 years. Loan amounts can go up to 90% of property value for loans up to ₹30 lakh.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (current Axis Bank rate is 6.90%), and loan tenure in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Axis Bank's current home loan interest rate?
A: As of 2023, rates start at 6.90% p.a. but may vary based on loan amount, tenure, and applicant's profile.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

Q3: Are there prepayment charges?
A: Axis Bank typically doesn't charge for prepayment of floating rate home loans, but terms may vary.

Q4: What factors affect EMI amount?
A: Principal amount, interest rate, and loan tenure are the three main factors that determine EMI.

Q5: Can I get EMI holidays?
A: Axis Bank may offer EMI holiday options for specific periods, but interest continues to accrue during this time.