## Description

EMI stands for Equated Monthly Installment and it is the monthly amount that you need to repay to the Axis Bank if you want to avail a personal loan from them. This amount is to be paid on a scheduled date every month, till the expiry of your loan tenure. This EMI amount is a combination of both the principal and the interest amount calculated by the bank on the loan amount availed. The proportion of the principal and the interest component varies every month. As a usual practice, the principal component of the Axis bank personal loan keeps on increasing and the interest component keeps on decreasing, with every EMI payment you make.

### What is an Axis bank personal loan EMI calculator?

A personal loan EMI calculator is a valuable tool that helps you with detailed calculations to ascertain your possible EMI amount. If you are confused about how your EMI is calculated by the Axis Bank, you should use the Axis bank personal loan EMI calculator, which is extremely easy to use.

## The formula used by a personal loan EMI calculator

A personal loan EMI calculator makes financial planning much easier for you. It provides detailed information about the amount you would have repaid to your lender at different stages of the personal loan tenure. This important tool makes use of the below-mentioned simple formula to calculate your EMI-

(1+r)n

E = P * r   ((1+r)n -1 )

1. Where E is the Axis bank personal loan EMI.
2. P is the loan amount borrowed from Axis Bank
3. ‘r’ is the interest rate offered by the Axis Bank. The monthly interest rate is applied here, in lieu of the annual rate of interest. The same is calculated by the formula r = (annual interest/12) /100. If the interest rate is 10.5% p.a, then r= 10.5/12/100= 0.00875
4. ‘n’ is the Axis Bank loan tenure in months. For example, instead of 3 years, 36 months is written.

Finding it complicated? Have a look at the following example to understand better-

Let us suppose Mr Navin has borrowed Rs 10 lakhs from Axis Bank for a tenure of 10 years, at the interest rate of 10.5% per annum. Then his EMI will be- Rs 10, 00,000 * 0.00875 * (1 + 0.00875) 120   / ((1+0.00875) 120 -1), which will be equal to Rs 13,493.

The total mount Mr Navin will repay to the Axis Bank will be Rs 13.493 * 120 = Rs 16, 19,220.

The total interest Mr. Navin will need to pay= Rs 16, 19,220- Rs 10, 00,000= Rs 6, 19,220

## The inputs required for the Axis Bank personal loan EMI Calculator?

A personal loan EMI calculator makes financial planning much easier for you. It provides detailed information about the amount you would have repaid to your lender at different stages of the personal loan tenure. This important tool makes use of the below-mentioned simple formula to calculate your EMI-

(1+r)n

E = P * r   ((1+r)n -1 )

1. Where E is the Axis bank personal loan EMI.
2. P is the loan amount borrowed from Axis Bank
3. ‘r’ is the interest rate offered by the Axis Bank. The monthly interest rate is applied here, in lieu of the annual rate of interest. The same is calculated by the formula r = (annual interest/12) /100. If the interest rate is 10.5% p.a, then r= 10.5/12/100= 0.00875
4. ‘n’ is the Axis Bank loan tenure in months. For example, instead of 3 years, 36 months is written.

Finding it complicated? Have a look at the following example to understand better-

Let us suppose Mr Navin has borrowed Rs 10 lakhs from Axis Bank for a tenure of 10 years, at the interest rate of 10.5% per annum. Then his EMI will be- Rs 10, 00,000 * 0.00875 * (1 + 0.00875) 120   / ((1+0.00875) 120 -1), which will be equal to Rs 13,493.

The total mount Mr Navin will repay to the Axis Bank will be Rs 13.493 * 120 = Rs 16, 19,220.

The total interest Mr. Navin will need to pay= Rs 16, 19,220- Rs 10, 00,000= Rs 6, 19,220

## The inputs required for the Axis Bank personal loan EMI Calculator?

You need to feed certain inputs to the personal loan EMI calculator of Axis Bank before it can display the desired result.

• Axis Bank personal Loan tenure

This is the time duration within which you need to repay your personal loan amount to the Axis bank. Usually, this period ranges from 12 to 60 months for an Axis personal loan. Longer loan tenure means lower personal loan EMI. The beauty of an Axis Bank personal loan EMI calculator is that if after putting a certain loan tenure into it as input if the EMI comes beyond affordable range, you can input lower tenures till the EMI comes within your affordable range.

• Loan amount

This is the amount you wish to borrow from Axis Bank and the bank calculates the interest on this amount. If you ask for a higher personal loan amount, you need to spend more on EMIs. Axis Bank offers loans up to a maximum of Rs 15 lakhs, depending on the credit profile, repayment history and income level of the borrowers. Once you decide on the personal loan amount to avail, insert the same into the Axis Bank personal loan EMI calculator in the appropriate space provided.

• Rate of Interest

It is perhaps the most critical component of the entire personal loan EMI calculation process. It is the rate offered to you by the Axis Bank, at which the bank will calculate the interest accrued on the personal loan amount availed by you. The higher is the rate of interest, the more will be your loan EMI.  This rate usually starts at 15.75 %. However, these interest rates can vary from borrower to borrower, as per their credit profiles.

Manish Pradhan is looking to avail an Axis bank personal loan of Rs 5 lakhs for a tenure of 4 years at the interest of 16.50% per annum. The following table shows his EMI, the interest outflow and the amount to be repaid at the end of every year.

 LOAN AMOUNT INTEREST RATE TENURE MONTHLY INSTALMENT TOTAL INTEREST AMOUNT TOTAL AMOUNT ₹ 5,00,000 16.50% 1 ₹ 45,484 ₹ 45,806 ₹ 5,45,806 ₹ 5,00,000 16.50% 2 ₹ 24,601 ₹ 90,428 ₹ 5,90,428 ₹ 5,00,000 16.50% 3 ₹ 17,702 ₹ 1,37,279 ₹ 6,37,279 ₹ 5,00,000 16.50% 4 ₹ 14,299 ₹ 1,86,328 ₹ 6,86,328

Also, the graph below shows that the EMI for the Axis Bank personal loan will be significantly lower if you avail the loan for a significantly longer tenure. ## Features of the Axis Bank personal loan

Some of the useful benefits provided by the Axis Bank personal loan are as follows-

• Competitive and best-in-class interest rates starting at 15.75%
• The Axis Bank charges personal loan interest rates on a reducing balance
• Completely transparent loan disbursal procedure
• Offers balance transfer facilities where you can transfer your existing high-interest debts from other lenders to Axis Bank at reduced rates
• You do not need to pledge any security/collateral while availing a personal loan from Axis Bank
• Zero foreclosure and prepayment charges
• These are multi-purpose loans where you enjoy complete flexibility on the end use of the funds borrowed. You will not be questioned by the Bank about your intended purpose.
• Flexible repayment period from 12 months to 60 months.
• Multiple loan repayment options such as PDCs & ECS.
• Simplified documentation
• You can earn Axis eDGE reward points every time you transact to make your Axis personal loan EMI payments. These accumulated points can be redeemed upon reaching the 500 point mark.
• Diverse personal loan options based on customer requirements
• You do not require a guarantor to avail an Axis bank personal loan