1. What is the Personal Loan EMI Formula?

The Personal Loan EMI (Equated Monthly Installment) formula calculates the fixed monthly payment required to repay a loan over a specified term. Axis Bank and other financial institutions use this standard formula to determine loan repayments.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( PMT \) — Monthly payment (EMI)
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Loan term in months

Explanation: The formula accounts for both principal repayment and interest payment in each EMI installment.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan offers before committing to a loan.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: What is the maximum loan amount I can get from Axis Bank?
A: Axis Bank offers personal loans up to ₹40 lakh, depending on eligibility criteria and repayment capacity.

Q3: What factors affect my EMI amount?
A: EMI depends on loan amount, interest rate, and loan tenure. Higher loan amounts or interest rates increase EMI, while longer tenures reduce EMI.

Q4: Can I prepay my Axis Bank personal loan?
A: Yes, Axis Bank allows prepayment after 12 EMIs with applicable prepayment charges (usually 2-5% of outstanding amount).

Q5: How can I reduce my EMI burden?
A: You can reduce EMI by either opting for a lower loan amount, negotiating a lower interest rate, or choosing a longer repayment tenure.