1. What is Home Loan Amortization?

Amortization is the process of spreading out a loan into fixed payments over time. Each payment covers both principal and interest, with the interest portion decreasing and principal portion increasing over the loan term.

2. How Does the Calculator Work?

The calculator uses standard amortization formulas:

Where:

• \( R \) — Monthly interest rate (annual rate / 12)
• Outstanding Balance — Remaining principal at start of month (Rs)
• EMI — Equated Monthly Installment (Rs)

Explanation: The EMI is calculated first, then each payment is split between interest and principal, with interest calculated on the remaining balance.

3. Understanding Your Amortization Schedule

Details: Early payments are mostly interest, with more going toward principal as the loan matures. The schedule shows exactly how much of each payment goes to interest vs. principal.

4. Using the Calculator

Tips: Enter loan amount in Rs, annual interest rate (check current Axis Bank rates), and loan term in years. Results show EMI, total interest, and payment breakdown.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Axis Bank home loan interest rate?
A: Rates vary (typically 8.5-10% p.a. as of 2023) based on loan amount, tenure, and borrower profile. Check Axis Bank's website for current rates.

Q2: Can I reduce my total interest payment?
A: Yes, by making prepayments (Axis allows up to 25% prepayment per year without penalty) or choosing a shorter loan term.

Q3: How does EMI change with interest rate changes?
A: For floating rate loans, EMI may change when rates change. Fixed rate loans maintain the same EMI throughout the term.

Q4: What charges are not included in this calculation?
A: Processing fees, insurance, and other charges are not included. Only principal and interest are calculated.

Q5: How accurate is this calculator?
A: It provides standard amortization calculations. Actual Axis Bank calculations may include small variations due to rounding policies.