Axis Bank offers personal loans up to Rs. 15 lakh at an attractive rate starting at 10.49% p.a. These loans can be availed to meet various financial needs including medical emergencies, wedding expenses, home renovation, etc. But before availing any loan, you should calculate the monthly EMIs, so that you can plan your expenses ahead of time. In the following sections, we will discuss Axis Bank personal loan EMI calculation method, available methods for online EMI payment and get answers to the most frequently asked questions regarding the same.
How Axis Bank Personal Loan EMI Calculator Functions?
Are you thinking of applying for Axis Bank personal loan? Or, maybe you have already applied for one and want to know the monthly EMI payout. Are you wondering how the EMI calculation is made? Y
You can use Axis Bank’s personal loan EMI calculator to compute the EMI payable on your personal loan even before you apply for it and manage your finances in a better way. You can also use the Paisabazaar personal loan EMI calculator to instantly know your personal loan EMI payout for free. Moreover, the EMI calculator allows you to try various combinations of loan parameters to arrive at the most suitable EMI for yourself.
EMI calculator uses 3 key parameters to automatically calculate your EMI instantaneously:
- Loan Amount: This refers to the loan amount borrowed. Generally, a higher loan amount translates into a higher EMI if the interest rate and tenure are kept constant. Axis Bank offers personal loans starting from amounts as low as Rs. 50,000 to as high as Rs. 15 lakh.
- Loan Tenure: This refers to the personal loan repayment period. The loan tenure for Axis Bank personal loan varies from 12 months to 60 months. Thus, you can choose the tenure as per your comfort. Please note that generally a longer tenure means lower EMIs.
- Interest Rate: This refers to the rate at which interest is charged on the personal loan. The interest rate for Axis Bank personal loan is linked to the bank’s 1-year MCLR and starts from 11%. Loan EMI usually increases with an increase in rate of interest. Moreover, the EMI amount also depends on the method of interest calculation, which is discussed in the subsequent section.
5 Factors That Affect the Interest Rate of Your Personal Loan
The Axis Bank personal loan rate of interest also depends on the following applicant specific criteria:
- Credit score and history
- Employer’s reputation and length of employment
- Credit utilization ratio
- Monthly income
- Fixed obligation to income ratio
Monthly EMI Payment Comparison of Popular Banks in India
A comparison of the monthly EMI payments of popular banks in India for varying loan amounts, tenures and interest rates is given below:
|Bank Name and Interest Rate||EMI Payout for Loan Tenure of 1 Year|
|Loan Amount of Rs. 1 lakh||Loan Amount of Rs. 3 lakh||Loan Amount of Rs. 10 lakh|
|Axis @ 11% p.a.||Rs. 8,838||Rs. 26,514||Rs. 88,382|
|ICICI @ 10.50% p.ae.||Rs. 8,815||Rs. 26,445||Rs. 88,149|
|HDFC @ 12.50% p.a.||Rs. 8,908||Rs. 26,725||Rs. 89,083|
|Citibank @ 9.99% p.a.||Rs. 8,791||Rs. 26,373||Rs. 87,911|
|PNB @ 8.95% p.a.||Rs. 8,743||Rs. 26,228||Rs. 87,428|
|SBI @ 9.60% p.a.||Rs. 8,773||Rs. 26,319||Rs. 87,730|
Axis Bank Personal Loan EMI Calculation
Axis Bank uses the reducing balance method to compute the EMI payable on its personal loans. The following table shows various possible EMIs with different combinations of loan amount, tenure and interest rate.
|Loan Amount (Rs.)||Interest Rate (p.a.)||Tenure (months)||EMI (Rs./month)|
Charges Levied on Non Payment of EMI – Cheque Bounce Charges and Penal Interest Charges
The following is a list of charges that may be levied in case Axis Bank personal loan EMI payments are not made on time:
|Repayment Instruction/ Instruction Return Charges||Rs. 500/- per instance of dishonour of cheque/SI/ECS/NACH debit instruction + GST|
|Penal Interest||24% per annum, i.e., 2% per month on the overdue EMI|
*Note: Subject to change as per Axis Bank’s discretion from time to time.
Factors Affecting Axis Personal Loan EMI
Following is the list of factors affecting Axis Bank personal loan EMI:
- Loan Amount: Generally monthly EMI amount increases, as the personal loan amount increases if tenure and interest rates are kept constant. For example, if you take a personal loan of Rs. 10 lakh at 12% for a period of 5 years, your monthly payout will be Rs. 22,244. However, if you avail a loan of Rs 5 lakh at the same rate of interest and tenure, your monthly payout will be Rs. 11,122.
- Loan Tenure: As the loan repayment period increases, the monthly payout usually decreases. However, this results in a greater interest payout in total. Thus, you should always try to find a balance between a low rate of interest and tenure to suit your monthly budget. For example, if you take a loan of Rs. 5 lakh at 12% for a period of 1 year, your monthly payout will be Rs. 44,424 with a total interest payout of Rs. 33,093. However, if you take a loan for the same amount and at the same rate of interest for a period of 5 years, your monthly payout will be Rs. 11,122 with a total interest payout of Rs. 1.67 lakh.
- Interest Rate: High interest rates mostly result in high EMIs. Not only the rate, but also the method of calculation matters. You should always avail a loan that follows the reducing balance method of interest calculation and not the flat rate method. For example, a loan of Rs. 5 lakh for 5 years at 12% interest rate with reducing balance method will result in EMIs of Rs. 11,122. Whereas, the same loan with a flat rate method will result in EMIs of Rs. 13,333. Thus opting for a reducing balance interest calculation is the preferred option.
Frequently Asked Questions (FAQs)
Q1. Does EMI calculator also show prepayment charges?
EMI calculator only displays the EMI amount on the basis of loan amount, tenure and interest rate. You can check the prepayment charges in the loan agreement.
Q2. What is the maximum and minimum tenure for Axis personal loan for EMI calculation?
The maximum tenure for Axis Bank personal loan is 60 months i.e. 60 EMIs, while the minimum tenure is 12 months i.e. 12 EMIs.
Q3. What method of EMI calculation does Axis Bank use?
Axis Bank uses the reducing balance method for calculating the EMI payable on its personal loans. Thus, interest is computed only on the outstanding loan principal and not on the loan principal amount that you borrowed initially.
Q4. How to arrive at the right EMI amount for my Axis Bank personal loan?
You can make use of the EMI calculator to try various combinations of loan amount, tenure and interest rate to reach at the most suitable EMI as per your monthly budget. However, do remember to consider all your outstanding debt and monthly expenditure to avoid any hassle at the time of repayment throughout the loan tenure.
Q5. What are the loan limits for Axis Bank personal loan EMI calculation?
Personal loan offers from Axis start from Rs. 50,000 and the maximum loan amount available is Rs. 15 lakh.