1. What is EMI?

EMI (Equated Monthly Installment) is the fixed payment amount a borrower pays to a lender each month until the loan is paid off. It consists of both principal and interest components.

2. How Does the EMI Calculator 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 over the specified period with the given interest rate.

3. Understanding the EMI Calculation

Details: In the initial EMIs, a larger portion goes toward interest payments. As the loan matures, more of the EMI goes toward reducing the principal.

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 factors affect my EMI amount?
A: The three main factors are loan amount, interest rate, and loan tenure. Higher amounts/rates increase EMI, while longer tenures reduce EMI but increase total interest.

Q2: How can I reduce my EMI payments?
A: You can either opt for a longer tenure or negotiate a lower interest rate. However, longer tenures mean paying more interest overall.

Q3: Are there any prepayment options with Axis Bank?
A: Yes, Axis Bank typically allows prepayment of loans, though terms may vary. Partial prepayments can reduce your EMI or loan tenure.

Q4: What's the difference between fixed and floating rate EMI?
A: Fixed rate EMIs remain constant throughout the tenure, while floating rate EMIs may change if the bank's lending rates change.

Q5: Does this calculator work for all Axis Bank loan products?
A: Yes, this calculator works for personal loans, home loans, car loans, and other Axis Bank loan products that use reducing balance interest.