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 includes both principal and interest components.

2. How Does the Calculator Work?

The calculator uses the standard EMI formula:

Where:

• \( P \) — Principal loan amount (₹)
• \( R \) — 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 tenure.

3. About Axis Bank Personal Loans

Details: Axis Bank offers personal loans with competitive interest rates, flexible tenures (up to 7 years), and loan amounts up to ₹40 lakhs. Interest rates typically range from 10.49% to 22% p.a.

4. Using the Calculator

Tips: Enter the loan amount you need, current Axis Bank personal loan interest rate, and preferred repayment period. The calculator will show your monthly EMI, total repayment amount, and total interest payable.

5. Frequently Asked Questions (FAQ)

Q1: What factors affect my EMI amount?
A: EMI depends on three factors - 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?
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 charges?
A: Axis Bank typically charges 0-2% prepayment penalty depending on loan terms. Partial prepayments may be allowed after 12 EMIs.

Q4: What documents are needed for an Axis Bank personal loan?
A: Generally requires identity proof, address proof, income documents (salary slips/bank statements), and KYC documents.

Q5: How is interest calculated on personal loans?
A: Axis Bank uses reducing balance method where interest is calculated on the outstanding principal each month.