1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. EMIs are used to pay off both interest and principal each month so that over time, the loan is paid off in full.

2. How EMI is Calculated

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components.

3. About Axis Bank Personal Loans

Details: Axis Bank offers personal loans with interest rates starting at 10.49% p.a. with flexible tenures up to 60 months. Loans are available for salaried and self-employed individuals with quick approval processes.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate (starting at 10.49%), and loan tenure in months (1-60). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum loan amount from Axis Bank?
A: Axis Bank typically offers personal loans starting from ₹50,000, though this may vary based on applicant profile.

Q2: How does prepayment affect EMI?
A: Prepayment reduces principal, which can either reduce EMI or loan tenure. Axis Bank may charge prepayment penalties in some cases.

Q3: What factors affect personal loan interest rates?
A: Credit score, income, employment stability, existing relationships with the bank, and loan amount/tenure all influence rates.

Q4: Are there processing fees?
A: Yes, Axis Bank typically charges 1-2% of the loan amount as processing fees plus applicable taxes.

Q5: How can I reduce my EMI burden?
A: Opting for longer tenures reduces EMI but increases total interest. Making part-prepayments when possible can help reduce overall cost.