1. What is the Loan Payment Formula?

The PMT formula calculates the fixed monthly payment required to repay a loan over a specified term, including both principal and interest. This is the standard formula used by Axis Bank and other financial institutions for fixed-rate loans.

2. How Does the Calculator Work?

The calculator uses the PMT formula:

Where:

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

Explanation: The formula accounts for compound interest over the life of the loan, ensuring each payment covers both interest and principal reduction.

3. Importance of Loan Calculation

Details: Understanding your monthly payment helps with budgeting and comparing loan offers. It also shows the true cost of borrowing through total interest calculations.

4. Using the Calculator

Tips: Enter principal in INR, annual interest rate as a percentage (e.g., 9.5 for 9.5%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What interest rate does Axis Bank charge?
A: Rates vary by loan type and customer profile. Current personal loan rates typically range from 10.49% to 22% p.a.

Q2: Are there any processing fees?
A: Axis Bank charges processing fees up to 2% of the loan amount plus GST, depending on the loan product.

Q3: Can I prepay my Axis Bank loan?
A: Yes, but prepayment charges may apply (0-5% depending on loan type and timing).

Q4: How can I contact Axis Bank loan customer care?
A: Call 1860-419-5555 or 1860-500-5555, or visit any Axis Bank branch.

Q5: What documents are needed for a loan?
A: Typically requires ID proof, address proof, income documents, and bank statements.