1. What is the EMI Formula?

The EMI (Equated Monthly Installment) formula calculates the fixed payment amount a borrower pays each month to clear their loan. The formula accounts for the principal amount, interest rate, and loan tenure.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

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

Explanation: The formula calculates the fixed monthly payment that includes both principal and interest components over the loan tenure.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, plan their budget, and compare different loan options before borrowing.

4. Using the Calculator

Tips: Enter the principal amount in INR, annual interest rate (e.g., 10.99 for 10.99%), and loan tenure in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is Axis Bank's current personal loan interest rate?
A: Axis Bank personal loan interest rates typically range from 10.49% to 22% p.a., depending on applicant profile and other factors.

Q2: What is the maximum tenure for Axis Bank personal loans?
A: Axis Bank offers personal loans with tenures up to 60 months (5 years).

Q3: Are there any prepayment charges?
A: Axis Bank may charge 0-2% prepayment penalty depending on loan terms and prepayment timing.

Q4: What factors affect personal loan EMI?
A: EMI depends on three factors: loan amount, interest rate, and repayment tenure. Higher loan amounts or rates increase EMI, while longer tenures reduce EMI.

Q5: How can I reduce my EMI burden?
A: You can reduce EMI by opting for a longer tenure, negotiating a lower interest rate, or borrowing a smaller amount.