1. What is EMI?

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

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula accounts for the time value of money, calculating the fixed monthly payment needed to completely repay the loan over its term.

3. Axis Bank Personal Loan Features

Details: Axis Bank offers personal loans with interest rates starting at 10.49% p.a., loan amounts up to ₹40 lakhs, and flexible repayment tenures from 1 to 5 years.

4. Using the Calculator

Tips: Enter the loan amount in INR, annual interest rate (starting at 10.49% for Axis Bank), and loan tenure in years. The calculator will show your monthly EMI, total interest, and total payment.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum loan amount for Axis Bank personal loans?
A: The minimum loan amount is typically ₹50,000, though this may vary based on eligibility.

Q2: What factors affect my EMI amount?
A: EMI depends on three factors: loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q3: Can I prepay my Axis Bank personal loan?
A: Yes, Axis Bank allows prepayment after 12 EMIs, usually with a prepayment charge of up to 2% of the outstanding amount.

Q4: How is interest calculated on personal loans?
A: Interest is calculated on a reducing balance basis, meaning you pay interest only on the outstanding principal each month.

Q5: What documents are needed for an Axis Bank personal loan?
A: Typically requires identity proof, address proof, income documents, and bank statements. Exact requirements depend on your employment type.