1. What is the Personal Loan EMI Formula?

The EMI (Equated Monthly Installment) formula calculates your fixed monthly payment for an Axis Bank personal loan, consisting of both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula accounts for compound interest over the loan term, with early payments weighted more toward interest and later payments more toward principal.

3. Importance of Amortization Table

Details: The amortization table shows the exact breakdown of each payment into principal and interest components, helping you understand how much interest you'll pay over the loan term and how your outstanding balance decreases over time.

4. Using the Calculator

Tips: Enter loan amount in INR, annual interest rate (Axis Bank typically offers 10.49% to 22% for personal loans), and loan term in months (6 to 84 months for Axis Bank).

5. Frequently Asked Questions (FAQ)

Q1: What is Axis Bank's personal loan interest rate range?
A: Typically 10.49% to 22% per annum, depending on credit profile, loan amount, and tenure.

Q2: What is the maximum loan amount from Axis Bank?
A: Up to ₹40 lakh for salaried individuals, subject to eligibility.

Q3: Are there prepayment charges?
A: Axis Bank charges 0-2% prepayment penalty depending on loan tenure and prepayment timing.

Q4: How can I reduce total interest paid?
A: Opt for shorter tenure or make partial prepayments when possible.

Q5: What documents are needed for Axis personal loan?
A: Typically KYC documents, income proof (salary slips/bank statements), and employment proof.