Axis Bank Part Payment Calculator

EMI Adjustment Formula:

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

Original Principal (P):

Part Payment Amount (PP):

Annual Interest Rate:

Original Loan Tenure (N):

months

Months Already Paid (M):

months

New EMI After Part Payment:

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1. What is the Axis Bank Part Payment Calculator?

The Axis Bank Part Payment Calculator helps you determine your new EMI amount after making a partial prepayment on your loan. It calculates the adjusted EMI based on your remaining principal and tenure.

2. How Does the Calculator Work?

The calculator uses the following formula:

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

Where:

\( P \) — Original principal amount (Rs)
\( PP \) — Part payment amount (Rs)
\( R \) — Monthly interest rate (annual rate / 12)
\( N \) — Original loan tenure (months)
\( M \) — Months already paid

Explanation: The formula recalculates your EMI based on the reduced principal and remaining tenure after your part payment.

3. Importance of Part Payment Calculation

Details: Making part payments can significantly reduce your interest burden and either lower your EMI or shorten your loan tenure. This calculator helps you plan your finances by showing the exact impact of your prepayment.

4. Using the Calculator

Tips: Enter your original loan amount, part payment amount, annual interest rate, original tenure in months, and number of EMIs already paid. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does Axis Bank charge for part payments?
A: Axis Bank may charge a prepayment penalty depending on your loan type and terms. Check your loan agreement for details.

Q2: Is it better to reduce EMI or tenure after part payment?
A: Reducing tenure saves more interest in the long run, while reducing EMI improves monthly cash flow. Choose based on your financial goals.

Q3: How often can I make part payments?
A: This depends on your loan terms with Axis Bank. Some loans allow multiple part payments, while others may have restrictions.

Q4: Does the calculator account for prepayment charges?
A: No, this calculator shows the theoretical new EMI without considering any prepayment charges. Your actual EMI may differ.

Q5: Can I use this for other bank loans?
A: While the formula is generally applicable, specific terms may vary by bank. Always check with your lender for exact calculations.