1. What is the EMI Calculation Formula?

The EMI (Equated Monthly Installment) calculation formula is used by Axis Bank and other financial institutions to determine the fixed monthly payment amount for a loan. It considers the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment that will completely pay off the loan (principal + interest) over the specified tenure.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before borrowing from Axis Bank.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (as offered by Axis Bank), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does Axis Bank use this exact formula for EMI calculation?
A: Yes, Axis Bank and most other banks use this standard EMI calculation formula for all types of loans.

Q2: Are there any hidden charges in Axis Bank EMI?
A: This calculator shows the pure EMI based on principal and interest. Axis Bank may have processing fees or other charges that are not included here.

Q3: Can I prepay my Axis Bank loan?
A: Yes, Axis Bank allows prepayment, often with certain terms and conditions. Prepayment reduces your total interest burden.

Q4: How does changing tenure affect my EMI?
A: Longer tenure reduces EMI but increases total interest paid. Shorter tenure means higher EMI but less total interest.

Q5: Is the interest rate fixed for entire tenure?
A: This depends on whether you have a fixed or floating rate loan from Axis Bank. The calculator assumes a fixed rate.