1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender at a specified date each calendar month. It's used to pay off both interest and principal each month so that over time, the loan is paid off in full.

2. How EMI Calculation Works

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (INR)
• \( R \) — Monthly interest rate (annual rate divided by 12, in decimal)
• \( N \) — Loan tenure in months
• \( EMI \) — Equated monthly installment (INR)

Explanation: The formula calculates the fixed payment amount that includes both principal and interest components each month.

3. Understanding Your EMI

Details: Your EMI consists of two parts - the principal amount and the interest amount. Initially, a larger portion goes toward interest, but as you continue paying EMIs, more goes toward principal repayment.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How does Axis Bank calculate EMI?
A: Axis Bank uses the standard EMI formula shown above, with interest calculated on a monthly reducing balance.

Q2: Can I change my EMI amount during the loan tenure?
A: Generally, EMI remains fixed for fixed-rate loans. However, you can request to increase EMI for faster repayment or refinance your loan.

Q3: What factors affect my EMI amount?
A: EMI depends on three factors: loan amount, interest rate, and loan tenure. Higher loan amounts or rates increase EMI, while longer tenures reduce EMI.

Q4: How can I reduce my EMI burden?
A: You can reduce EMI by opting for a longer tenure, making a larger down payment, or negotiating a lower interest rate.

Q5: Are there any prepayment charges on Axis Bank loans?
A: Prepayment charges vary by loan type. Many personal loans have no prepayment penalty, while home loans may have charges for partial prepayment.