1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment (PMT) required to repay a loan over a specified term. It accounts for the principal amount, interest rate, and loan duration to determine your monthly obligation.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of monthly payments
• \( PMT \) — 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 understand their financial commitment, compare loan offers, and budget effectively for repayment.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What interest rate does Axis Bank charge for personal loans?
A: Axis Bank personal loan interest rates typically range from 10.49% to 22% p.a., depending on credit profile and other factors.

Q2: Are there any processing fees for Axis Bank personal loans?
A: Yes, Axis Bank charges up to 2% of the loan amount as processing fee, subject to a minimum of ₹2,500.

Q3: What is the maximum loan term available?
A: Axis Bank offers personal loans with repayment tenures ranging from 12 to 60 months.

Q4: Does this calculator include insurance or other charges?
A: No, this calculates only the principal and interest components. Actual payments may include additional charges.

Q5: Can I prepay my Axis Bank personal loan?
A: Yes, but prepayment charges may apply depending on when you choose to prepay the loan.