Your repayments play an important role in your personal loan. If you don’t pay it, there will be consequences such as legal trouble, poor credit score, etc. So, to ensure you won’t face such a situation, Axis Bank introduces an EMI Calculator. This is an online tool that helps one know his EMI amount. To learn how Axis Bank Personal Loan Calculator works and what are its advantages and disadvantages, keep reading this page.
Functions of an Axis Bank Personal Loan Calculator
This tool generates the EMI and total payable interest amount. Using that information, the borrower can manage his/her budget and ensure regular payments during the tenure. The Axis Bank Personal Loan Calculator works as per the below formula –
EMI = P × R × (1 + R)N/((1 + R)N – 1)
In the formula, you can see different capital letters. Well, those letters symbolize your loan details such as –
Principal Amount (P)
This is the amount you’re going to borrow from Axis Bank. Your limit of Principal Amount will depend on your income and obligations. Because an applicant who is already paying multiple EMIs or credit card bills won’t be eligible to borrow another loan. Unless he/she has a high income and can afford the same. The highest principal amount Axis Bank can offer is INR 15 Lakh. You can check the loan limit of Axis Bank on the calculator as you will not be able to insert an amount more than the limit.
Interest Rate (R)
Axis Bank charges an interest rate on your personal loan that begins from 10.29% per annum. The maximum rate is 21.00% per annum. And the key to getting the lowest interest rate is by showing your eligibility for the loan. Because a highly eligible applicant is more likely to repay the loan compared to the one who barely meets the eligibility criteria.
So, to grab the lowest interest rate on your Axis Bank Loan, check your credit score and income before applying for the same. Because a lower rate can help you get affordable repayments.
You get a period of 12-60 months from Axis Bank to repay the loan plus interest in equated monthly installments. Choose the tenure of your Axis Bank Personal Loan using the calculator. With this, you can see at which period the interest payout and EMI are more affordable to you.
Shall I Use the Axis Bank Personal Loan Calculator During the Tenure?
Yes, you shall. It can help you plan various things like prepaying a loan and saving on interest. As per the loan terminology, it is called prepayment. What happens in a prepayment? Axis Bank allows the borrower to foreclose the loan before the end of the tenure. In this, the borrower needs to pay the loan balance in a lump sum. If an individual can accumulate the loan balance amount at the time of prepayment, he/she can thus pay the same and reduce interest obligations.
And to plan the same, take help from the Axis Bank Loan Calculator. When you use this Axis Bank Personal Loan Calculator, an amortization table is displayed on your screen. In the table, you can see the loan balance after each year’s payment. According to it, start investing your money in different instruments, so till that time, you can earn such a lump sum amount to close your loan.
Is there any Charge for Axis Bank Personal Loan Closure?
Yes, Axis Bank charges the following fees when you prepay the principal balance.
- 5% of the loan balance upon prepayment within the first year
- 4% of the loan balance upon prepayment between 13 to 24 months
- 3% of the loan balance upon prepayment between 25 to 36 months
- 2% of the loan balance upon prepayment after 36 months