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. For Axis Bank personal loans, EMI payments include both principal and interest components.

2. How Does the EMI Calculation Work?

The calculator uses the standard EMI formula:

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 calculates the fixed monthly payment that would pay off the loan with interest over the specified period.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their repayment obligations, plan their finances, and compare different loan options before committing to a personal loan from Axis Bank.

4. Using the Calculator

Tips: Enter the 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 current personal loan interest rate?
A: Axis Bank personal loan interest rates typically range from 10.49% to 22% p.a., depending on credit profile and other factors.

Q2: How does EMI change with tenure?
A: Longer tenures reduce EMI but increase total interest paid. Shorter tenures increase EMI but reduce total interest.

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

Q4: What is the maximum loan amount I can get?
A: Axis Bank offers personal loans up to Rs 40 lakh, subject to eligibility criteria.

Q5: How can I reduce my EMI burden?
A: You can reduce EMI by opting for longer tenure, negotiating lower interest rate, or making partial prepayments when possible.