1. What is EMI Calculation?

The EMI (Equated Monthly Installment) calculation determines your fixed monthly payment for a car loan. It includes both principal and interest components, calculated using a standard mathematical formula.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (₹)
• \( R \) — Monthly interest rate (annual rate ÷ 12 ÷ 100)
• \( N \) — Loan tenure in months

Explanation: The formula calculates the fixed payment amount that will completely pay off the loan (principal + interest) over the specified tenure.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps in financial planning, comparing loan offers, and determining affordability before committing to a car purchase.

4. Using the Calculator

Tips: Enter loan amount in ₹, annual interest rate (Axis Bank's current rate), and loan tenure in months (1-84 months typical for car loans).

5. Frequently Asked Questions (FAQ)

Q1: What is Axis Bank's current car loan interest rate?
A: As of 2023, Axis Bank offers car loans starting from 8.70% p.a. (subject to change based on credit profile and vehicle).

Q2: What is the maximum tenure for Axis Bank car loans?
A: Typically up to 7 years (84 months) for new cars, shorter for used cars.

Q3: Does EMI remain constant throughout the loan tenure?
A: Yes, EMI remains fixed in a standard reducing balance loan, though principal/interest components change each month.

Q4: Are there any prepayment charges?
A: Axis Bank may charge 2-4% for prepayment, but policies vary - check current terms.

Q5: What factors affect EMI amount?
A: Principal amount, interest rate, and loan tenure are the three key factors determining EMI.