1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower makes to a lender each month until the loan is paid off. It consists of both principal and interest components.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12 and 100)
• \( n \) — Loan tenure in months
• \( PMT \) — Monthly EMI payment

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

3. About Axis Bank Personal Loans

Details: Axis Bank offers personal loans with competitive interest rates (typically 10.49% to 22% p.a. in 2024), flexible tenures (1-5 years), and loan amounts up to ₹40 lakhs for eligible customers.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate (%), and loan tenure in years. The calculator will show your monthly EMI, total interest, and total repayment amount.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: Principal amount, interest rate, and loan tenure are the key factors. Higher principal/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q2: How can I reduce my EMI?
A: You can opt for a longer tenure or negotiate a lower interest rate. Making a larger down payment reduces the principal amount.

Q3: Are there prepayment charges?
A: Axis Bank may charge 0-2% for prepayment, depending on loan terms. Check current policies before applying.

Q4: What's the minimum salary required?
A: Typically ₹15,000-₹25,000 monthly net income for salaried individuals, varying by city and employment type.

Q5: How quickly can I get the loan?
A: Axis Bank offers quick disbursal, often within 24-72 hours of document verification for approved applicants.