1. What is the Axis Bank Loan Calculator?

The Axis Bank Loan Calculator helps estimate monthly payments for personal loans using the standard amortization formula. While designed for Axis Bank's loan products, this calculator provides general estimates not specific to Bangladesh.

2. How Does the Calculator Work?

The calculator uses the 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 calculates the fixed monthly payment required to fully amortize a loan over its term, including both principal and interest components.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures the loan is affordable. It also allows comparison between different loan offers.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate (without % sign), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is this calculator specific to Bangladesh?
A: No, this provides general calculations based on Axis Bank's standard formula and is not specific to any country.

Q2: What's included in the monthly payment?
A: The payment includes both principal and interest. Additional fees or insurance may apply to actual loans.

Q3: How does interest rate affect payments?
A: Higher rates increase monthly payments. A 1% rate increase can significantly impact long-term loans.

Q4: Are prepayments considered?
A: No, this calculator assumes fixed payments for the entire term without early repayments.

Q5: How accurate is this calculator?
A: It provides estimates. Actual loan terms may vary based on creditworthiness and bank policies.