Personal loans are the simplest of all loans as they are unsecured and do not involve a cumbersome process. More so, if it is Axis Bank Personal Loan. With minimal documentation and an online application process, the approval of the loan will be quicker and you will get the funds in your account within no time. The repayment period is flexible, which makes it convenient for you to manage the EMI to suit your budget. What are you waiting for? Arrive at the affordable EMI using Axis Bank Personal Loan EMI Calculator and go ahead with the loan application process.
It is recommended to borrow wisely for your financial well being. Calculate the EMI using Axis Bank EMI Calculator to be aware of the additional monetary obligation and prepare for the same. How to use the EMI Calculator is illustrated below.
EMI = [P x R x (1+R)^N]/[(1+R)^N-1] where,
P is the principal
R is the rate of interest
N is the tenure in months.
There are two ways of calculating interest — Interest calculation at a flat rate and interest calculation on reducing balance. The EMI for the flat rate calculation will be slightly higher than the EMI for the calculation on the reducing balance as the interest will be applied to the original sanctioned amount throughout the flat rate calculation. Whereas for the reducing balance calculation, the interest will be applied to the outstanding balance at any time. Axis Bank applies the reducing balance method for the interest calculation, and the formula for EMI/interest calculation is as mentioned above. The Axis Bank Personal Loan EMI calculator will give the overall interest to be paid for a particular tenure. The amortization schedule will give the monthly interest details for the entire tenure.
Know in detail: Simple Interest Formula Calculation
Axis Bank provides personal loans at an economical rate of interest to fund all your aspirations noted in your bucket list. With the financial assistance of Axis Bank in the form of a personal loan, you can be rest assured the need for funds can never hold you back, and you can fulfil all your dreams. It is essential to be aware that the enthusiasm to achieve your dreams should not land you in financial stress. For that, you need to budget your finance by knowing the EMI for the loan to be availed using the Axis Bank Personal Loan EMI Calculator before approaching the bank. The following are the benefits of the Axis Personal Loan EMI Calculator.
The primary reason to use Axis Bank Personal Loan EMI Calculator is to be stress-free even after availing of a loan. The other reasons to use the EMI Calculator are:
An unplanned EMI can be the most stressful part of financial management. It will lead to EMI missouts that will put your creditworthiness and reputation at stake. Consolidate your existing financial commitments like mandatory bill payments, existing EMIs and buffer requirements for unexpected expenses and arrive at the surplus funds available to service the proposed EMI. Use the Personal Loan EMI calculator and estimate the EMI that fits the available funds. You can prepare to fulfil your expensive plan on your bucket list, like investing in a dream home, by making regular repayments to the personal loan and building a good credit score. A good score will make you eligible for the best home loan deal regarding loan amount and interest rate.
With an increase in the purchasing power of the consumers, the need for personal loans to make available funds for their plans on the bucket list has increased in leaps and bounds. With the increase in demand, the options in terms of the repayment period, interest rate and the loan amount are also many. With several players in the market, the consumer gets a comprehensive option to choose from. But it is not as easy as it seems to be.
You will have to make an assessment of your requirement and repayment capacity to select a personal loan that could be paid back in an EMI that fits your budget. Further, the fluctuation in the interest rates can give you surprises now and then when the EMI increases proportionately at a time when you are not really prepared for the extra commitment. Read further to understand the factors that affect the personal loan EMI and plan accordingly to avert surprises through the entire tenure of the loan.
Credit Score: Applicants with a higher credit score are considered low-risk borrowers, and the lenders will be sure of recovering the loan extended to such borrowers. The lenders will go to any extent to bring such borrowers into their fold and will also make the interest negotiation open to applicants with a good credit score. With a lower interest rate, the EMI will become more affordable.
Income: The debt to income ratio will be typically lower when the payment is high. Lenders prefer applicants with a high and stable income and will extend special privileges like a higher loan amount with a lower interest rate to such applicants. A good income can culminate into a loan at lower interest with an affordable EMI.
Employer: Applicants employed with well known private companies, Government/Public Sector companies will be considered to be solvent and responsible for making the repayments to loans seamlessly. Lenders will to a large extent, relax the credit policies for such applicants, which can result in a loan with affordable interest and EMI.
Tenure: This is a critical factor that affects the EMI inversely. Higher the tenure, lower will be the EMI and vice versa. If you have to fit your EMI within a certain budget, you will have to go for a personal loan with the highest repayment tenure option. The maximum tenure for a personal loan offered by lenders is five years. However, there are lenders who offer tenure up to 7 years. If need be, you will have to opt for the loan with seven years to get the loan at an EMI that is easy on your pocket.
Apart from the EMI based on the interest rate, loan amount and tenure, the personal loan EMI calculator can give you an idea about the cost of the loan and a break up of the interest and principal apportionment for the entire tenure. You should be aware of specific details beyond this to ascertain the exact cost of the loan, and the personal loan EMI calculator cannot tell you about this. You should be ideally getting the details from the lender from whom you intend to borrow.
Processing charges: The fee at 0.50% to 2% of the loan amount collected at the time of loan application or the disbursement of the loan is the processing charges.
Prepayment and part prepayment charges: You will be making a prepayment if you intend to close the entire loan before maturity. Prepayment charges at 2% to 4% of the outstanding principal will be collected for the preclosure. If you have an intention to either reduce the EMI or reduce the tenure, you will be making periodical part prepayments for which prepayment charges will be collected at 2% to 4% of the prepaid amount.
Overdue penalty: For any EMI missouts, a penalty will be charged at 2% of the overdue amount that will again increase the cost of the loan.
The Axis Bank Personal Loan EMI is calculated using the formula EMI = [P x R x (1+R)^N]/[(1+R)^N-1]. P denotes the principal, R represents the rate of interest, and N denotes the tenure in months.
To use the Axis Bank Personal Loan EMI Calculator you should primarily access the official website of the bank. Later follow the steps given below to arrive at the EMI.
Apart from the EMI, you can get the details of the overall interest payable and the break-up of the interest and principal contribution out of the monthly EMI. Details of the contribution will be available for the entire chosen tenure.
You will have the privilege of negotiating on the interest rates for the Axis Bank Personal Loan provided your credit score is high, you have a high and stable income, you have been employed with reputed companies or Government/Public Sector Organisations and if you have a good and long-standing relationship with the Bank.
Skipping EMIs can have several adverse effects. The first and foremost is the dip in credit score that will bring down your creditworthiness and reputation. Details of delayed repayments will be recorded in the credit report that can negate the chances of approval of further loans.