1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term, including interest. Axis Bank offers personal loans with interest rates starting at 10.49% per annum.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan term, calculating a fixed payment that covers both principal and interest each month.

3. About Axis Bank Personal Loans

Details: Axis Bank offers personal loans with amounts ranging from ₹50,000 to ₹40 lakh, with repayment tenures from 1 to 5 years. Interest rates start at 10.49% per annum for eligible customers.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (default is 10.49%), and loan term in years. The calculator will show your estimated monthly payment, total repayment amount, and total interest paid.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum loan amount from Axis Bank?
A: Axis Bank offers personal loans starting from ₹50,000, depending on eligibility criteria.

Q2: What is the maximum repayment period?
A: The maximum repayment period is typically 5 years (60 months) for Axis Bank personal loans.

Q3: Are there any prepayment charges?
A: Axis Bank may charge a prepayment penalty if you repay the loan before completion of the agreed tenure. Check current terms as policies may change.

Q4: What documents are required for a personal loan?
A: Typically you'll need identity proof, address proof, income documents, and bank statements. Exact requirements may vary.

Q5: How can I improve my chances of approval?
A: Maintain a good credit score (750+), stable income, and low debt-to-income ratio to improve approval chances.