1. What is Total Interest in Home Loans?

The total interest represents the entire amount you'll pay in interest over the life of your Axis Bank home loan. It's the difference between your total payments and the principal amount borrowed.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( n \) — Number of payment periods (months)
• \( PMT \) — Monthly payment amount (INR)
• \( P \) — Principal loan amount (INR)

Explanation: The formula calculates how much more you'll pay than the original loan amount when accounting for all monthly payments.

3. Importance of Calculating Total Interest

Details: Understanding total interest helps borrowers compare loan offers, evaluate refinancing options, and make informed decisions about loan terms and prepayments.

4. Using the Calculator

Tips: Enter the loan term in months, your monthly payment amount, and the principal loan amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does Axis Bank determine interest rates?
A: Axis Bank home loan rates depend on factors like RBI repo rate, loan amount, tenure, and applicant's credit profile.

Q2: Can I reduce my total interest payment?
A: Yes, through prepayments, choosing shorter tenures, or negotiating better interest rates.

Q3: Does this include processing fees and other charges?
A: No, this calculation only considers principal and interest. Additional fees are not included.

Q4: How often do Axis Bank home loan rates change?
A: Rates may change based on market conditions and RBI policy, but your rate may be fixed for certain periods depending on your loan type.

Q5: What's the difference between flat and reducing balance rates?
A: Most home loans use reducing balance method where interest is calculated on outstanding principal, resulting in lower total interest than flat rate method.