One should always plan one's finances properly, especially with loans. An EMI calculator is an essential tool that helps plan one's finances. The leading private bank in India, Axis Bank, offers its unique version, the Personal Loan EMI Calculator. This blog highlights the Personal Loan EMI Calculator from Axis Bank, its functioning and its benefits.

What is the Axis Bank Personal Loan EMI Calculator?

The Axis Bank Personal Loan EMI Calculator is a tool that can be accessed both on the bank's website. This Calculator assists potential borrowers in trying to project EMI of the personal loan they might apply for. One can get an accurate estimate of their monthly EMI outflows by entering loan details, like the loan amount, interest rate, and tenure.

How Does Axis Bank Personal Loan EMI Calculator Work?

Personal Loan EMI Calculator of Axis Bank uses a standard mathematical formula that computes the EMI. Here is broadly how the system works:

1. Input Parameters: The users must supply three essential parameters:
   • Loan Amount: The total amount borrowed.
   • Annual Interest Rate: The interest rate for the loan is charged annually.
   • Loan Tenure: This refers to the duration within which a loan's repayment is usually done.
2. Calculations: It takes input from a mathematical formula to work out the EMI. The principal, the interest rate, and the tenure are used to determine the loan amount to be paid every month for repayment.
3. Output: It calculates the EMI as soon as the inputs are given. It may also provide an amortisation schedule showing the breakup of principal and interest components over the loan tenure.

ClearTax Personal Loan EMI Calculator is also given above to help users in computing EMIs of their personal loan.

Axis Bank Personal Loan EMI Calculator Formula

The EMI for a personal loan is calculated using the following formula:

EMI Amount Formula = [P x R x (1+R)^N]/[(1+R)^N-1]

• P = Principal loan amount
• r = Monthly interest rate (annual interest rate divided by 12 and then by 100)
• n = Loan tenure in months

Example of Personal Loan EMI Calculation

Let’s consider an example to understand how the EMI calculation works.

Suppose you take a personal loan of ₹5,00,000 from Axis Bank at an annual interest rate of 12% for a tenure of 5 years (60 months).

1. Convert Annual Interest Rate to Monthly
   • Annual interest rate = 12%
   • Monthly interest rate
   • r = 12 / (12 * 100) = 0.01
2. Loan Tenure in Months
   • Tenure
   • n = 5 years = 60 months
3. Substitute in the Formula

• EMI Amount = [P x R x (1+R)^N]/[(1+R)^N-1]

1. Calculate EMI
   • Using the formula,
   • ???≈₹11,122

So, the EMI for a ₹5,00,000 loan at 12% interest for 60 months is approximately ₹11,122.

Features and Benefits of Axis Bank Personal Loan EMI Calculator

Key features and benefits of the Axis Bank Personal Loan EMI Calculator are:

1. Precision: Provides exact computations of EMI with input parameters, thus smoothing the loan process for the borrower.
2. Easy to Use: The intuitive interface only takes a small amount of input for results development.
3. Quick Results: This application's instant nature of the EMI calculation saves a lot of time.
4. Financial Planning: Aids in planning and budgeting so you are aware of monthly financial commitments that ought to be paid.
5. Compare Tool: Here, the user can enter different values for loan amount, interest rate, and tenure to locate the best loan plan.
6. Amortisation Schedule: Time-wise break-up of each EMI in terms of the amount allocated to interest and principal deduction over the tenure of a loan.

Amortization Schedule of Axis Bank Personal Loan

An amortisation schedule is a table detailing each periodic payment on a loan. It provides a breakdown of the principal and interest amounts paid each month and the remaining balance after each payment. Here’s an example based on our earlier EMI calculation:

Example of Amortization Schedule for ₹5,00,000 loan at 12% interest over 60 months

This table shows how each EMI payment is divided between principal repayment and interest, with the outstanding loan balance decreasing over time.

Conclusion

The Axis Bank Personal Loan EMI Calculator is one of the most valuable tools for considering this personal loan from Axis Bank. It gives borrowers confidence in making justified financial decisions by getting correct EMI calculations and precise amortisation schedules. Whether you use the calculator on the Axis Bank website or through financial platforms such as ClearTax, you will be sure that the resulting EMI will be affordable and tailored toward your goals. This could help when planning better and bracing up for smooth loan repayment.