Personal Loan Calculator Monthly Payment Axis Finance

Personal Loan Payment Formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Monthly Payment (PMT):

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1. What is the Personal Loan Payment Formula?

The personal loan payment formula calculates the fixed monthly payment required to repay a loan over a specified term. This calculation is based on the principal amount, annual interest rate, and loan term.

2. How Does the Calculator Work?

The calculator uses the personal loan payment formula:

\[ PMT = P \times \frac{r \times (1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( P \) — Principal loan amount (INR)
\( r \) — Monthly interest rate (annual rate divided by 12)
\( n \) — Number of monthly payments (loan term in years × 12)
\( PMT \) — Monthly payment amount (INR)

Explanation: The formula accounts for compound interest over the life of the loan, calculating a fixed payment that covers both principal and interest each month.

3. Importance of Loan Payment Calculation

Details: Understanding your monthly payment helps with budgeting and ensures you can comfortably afford the loan. Axis Finance personal loans start at 10.49% p.a. interest rate.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (minimum 10.49%), and loan term in years. The calculator will show your estimated monthly payment, total repayment amount, and total interest.

5. Frequently Asked Questions (FAQ)

Q1: What is the minimum interest rate for Axis Finance personal loans?
A: The current minimum interest rate is 10.49% p.a., but actual rates may vary based on creditworthiness.

Q2: How does loan term affect monthly payments?
A: Longer terms reduce monthly payments but increase total interest paid. Shorter terms have higher monthly payments but lower total interest.

Q3: Are there any additional charges?
A: This calculator shows principal and interest only. There may be processing fees or other charges - check with Axis Finance for complete details.

Q4: Can I prepay my loan?
A: Most personal loans allow prepayment, sometimes with prepayment charges. Check your loan agreement for specifics.

Q5: How accurate is this calculator?
A: This provides an estimate. Your actual payment may vary based on final approved terms, fees, and any rate changes.