Axis Bank Car Loan Calculator

EMI Formula:

\[ EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N - 1} \]

EMI Amount:

Total Payment:

Total Interest:

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1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays to the lender each month. For Axis Bank car loans, it considers the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

\[ EMI = \frac{P \times R \times (1+R)^N}{(1+R)^N - 1} \]

Where:

\( P \) — Principal loan amount (Rs)
\( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
\( N \) — Loan tenure in months

Explanation: The formula accounts for both principal and interest components of the loan, with interest being higher in initial payments.

3. Importance of EMI Calculation

Details: Accurate EMI calculation helps borrowers plan their finances, compare loan offers, and choose the right tenure based on their repayment capacity.

4. Using the Calculator

Tips: Enter principal amount in Rs, annual interest rate in percentage, and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Axis Bank's typical car loan interest rate?
A: Rates typically range from 8.50% to 12.50% p.a. depending on credit profile, loan amount, and tenure.

Q2: What is the maximum tenure for Axis Bank car loans?
A: Generally up to 7 years (84 months) for new cars and 5 years (60 months) for used cars.

Q3: Are there any prepayment charges?
A: Axis Bank usually charges 0-2% for prepayment, but policies may vary based on loan terms.

Q4: What factors affect EMI amount?
A: Principal amount, interest rate, and loan tenure are the primary factors. Processing fees may also affect total cost.

Q5: Can I get 100% financing for a car loan?
A: Typically banks finance up to 85-90% of the car's ex-showroom price. Some schemes may offer higher financing.