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 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 completely pay off the loan over its tenure, including both principal and interest.

3. Importance of EMI Calculation

Details: Calculating EMI helps borrowers understand their monthly financial commitment, plan their budget, and compare different loan options before applying for an Axis Bank personal loan.

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 the typical interest rate for Axis Bank personal loans?
A: Interest rates vary but typically range from 10.49% to 22% p.a. depending on credit profile, loan amount, and tenure.

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% of the principal outstanding as prepayment charges, depending on the loan terms.

Q4: How does reducing tenure affect EMI?
A: Shorter tenure increases EMI but reduces total interest paid. Longer tenure reduces EMI but increases total interest.

Q5: What factors affect personal loan eligibility?
A: Income, credit score, employment type, existing obligations, and relationship with the bank affect loan eligibility.