1. What is the Personal Loan Payment Calculator?

This calculator computes monthly payments for Axis Capital-style personal loans using the standard loan payment formula. It helps borrowers estimate their monthly obligations based on principal amount, interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( n \) — Total number of payments (term in years × 12)
• \( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the life of the loan, spreading payments evenly across all months.

3. Importance of Loan Payment Calculation

Details: Accurate payment calculation helps borrowers budget effectively, compare loan offers, and understand the total cost of borrowing before committing to a loan.

4. Using the Calculator

Tips: Enter principal amount in INR, annual interest rate in percentage, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this calculator include Axis Capital's specific fees?
A: No, this calculates base payments only. Actual Axis Capital loans may include additional fees or charges.

Q2: How does interest rate affect payments?
A: Higher rates increase both monthly payments and total interest paid over the loan term.

Q3: What's better - shorter or longer loan terms?
A: Shorter terms mean higher monthly payments but less total interest. Longer terms reduce monthly payments but increase total interest.

Q4: Can I calculate partial year terms?
A: This calculator uses whole years. For partial years, convert to months (e.g., 3.5 years = 42 months).

Q5: Are results accurate for all loan types?
A: This works best for fixed-rate personal loans. Other loan types (variable rate, balloon payments) require different calculations.