1. What is Axis Bank Personal Loan Monthly Interest?

The monthly interest for an Axis Bank personal loan is calculated by multiplying the principal amount by the monthly interest rate. This represents the interest portion of your monthly payment.

2. How Does the Calculator Work?

The calculator uses the simple interest formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (decimal)

Explanation: The formula calculates only the interest portion for one month. For total monthly payment, you would need to add the principal repayment portion.

3. Importance of Interest Calculation

Details: Understanding your monthly interest helps in budgeting and comparing loan offers. It shows how much of your payment goes toward interest versus principal.

4. Using the Calculator

Tips: Enter principal amount in INR and monthly interest rate in decimal form (e.g., 0.01 for 1%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I find my monthly interest rate?
A: Divide your annual interest rate by 12. For example, 12% APR becomes 0.01 (1%) monthly rate.

Q2: Does this include the principal repayment?
A: No, this calculates only the interest portion. Your actual EMI would include both principal and interest.

Q3: Are Axis Bank personal loan rates fixed?
A: Rates may be fixed or variable depending on the loan terms. Check your loan agreement for details.

Q4: How often does interest compound?
A: Most personal loans use monthly compounding, but confirm with your specific loan terms.

Q5: Can I reduce my interest payments?
A: Making prepayments or choosing a shorter loan term can reduce total interest paid.