1. What is Loan Amortization?

Loan amortization is the process of paying off a debt over time through regular payments. An amortization schedule shows the breakdown of each payment into principal and interest components, and how the loan balance decreases over time.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment required to fully repay a loan over its term, accounting for compound interest.

3. Importance of Amortization Schedule

Details: Understanding your amortization schedule helps you see how much of each payment goes toward interest versus principal, plan for prepayments, and understand the true cost of borrowing.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (without % sign), and loan term in years. The calculator will show your monthly payment and generate a full amortization schedule.

5. Frequently Asked Questions (FAQ)

Q1: What is Axis Bank's typical interest rate range?
A: Axis Bank personal loan rates typically range from 10.49% to 22% p.a. depending on credit profile, loan amount, and tenure.

Q2: How can I reduce total interest paid?
A: Making additional principal payments or choosing a shorter loan term will reduce total interest costs.

Q3: Are there prepayment penalties?
A: Axis Bank may charge prepayment penalties on some loans; check your loan agreement for details.

Q4: Why does early payment go mostly toward interest?
A: This is how amortization works - interest is calculated on the outstanding balance, which is highest at the beginning.

Q5: How accurate is this calculator?
A: This provides a standard amortization schedule. Actual payments may vary slightly due to rounding or specific bank policies.