Credit Card Calculator for

Axis Bank

Axis Bank Credit Card EMI Calculator

Axis Bank credit cards offer an instant credit facility, allowing users to spend up to their approved limit. Customers can use the cards and repay the due amount within a specific window without incurring additional costs. If the outstanding amount is not settled by the due date as per the billing cycle, the issuer may impose a penalty or late fee.

The total outstanding balance can also be converted into equated monthly installments (EMIs), enabling easier repayment.

What is an Axis Bank Credit Card EMI Calculator?

The Axis Bank Credit Card EMI Calculator is an online financial tool designed for determining the EMIs for settling outstanding balances on credit cards.

This tool performs complex computations within seconds to find out the applicable EMI based on principal, interest, and repayment tenure. It facilitates enhanced financial planning by finding out the EMIs in advance.

How to Use the Axis Bank Credit Card EMI Calculator?

1. Go to the ‘Axis Bank Credit Card EMI Calculator’ section.
2. Enter the due amount.
3. Choose the repayment tenure.
4. Select the interest rate for your credit card.

Your EMI will be calculated and displayed on the screen.

Factors Affecting Axis Bank Credit Card EMI

• The principal amount, interest rate, and repayment tenure impact your Axis Bank Credit Card EMI.
• Higher borrowing or interest rates will result in greater EMIs.
• Longer repayment tenures will spread out payments, lowering EMIs but increasing total interest costs.

Benefits of Axis Bank Credit Card EMI Calculator

• By showing the exact EMI amount to be paid, the Axis Bank Credit Card EMI Calculator helps borrowers plan their monthly budget.
• The online tool allows users to compare different offers by adjusting amounts, interest rates, and tenures.
• It provides accurate calculations and a detailed amortization schedule, thus enabling enhanced financial decision-making.
• The tool also shows how extra payments or pre-payments affect the repayment tenure and overall interest paid.

Axis Credit Card Interest Rates and Tenure

Axis Bank credit card interest rates can range between 35-40%, depending on the card type and other factors.

Axis Bank credit card outstanding balance can be converted into EMIs for 3 to 18 months.

Understanding Axis Bank Credit Card EMI and Its Components

Every credit card EMI is divided into two key components:

• Total Debt Amount Component: The part of the EMI that repays the original due amount.
• Interest Component: Covers the cost of borrowing and is calculated on the outstanding principal balance.

In the early stages of repayment, the interest component is higher, with most of your EMI going towards it. Over time, the principal repayment increases as the interest portion decreases.

Step-by-Step Guide to Calculating Axis Credit Card EMI

The EMI for each type of loan is calculated using a formula:

EMI = [P × r × (1 + r)^n] / [(1 + r)^n - 1]

Where:

• P – Total transaction amount or outstanding credit card balance converted into EMIs.
• R – The interest rate charged by the credit card issuer.
• n – Repayment tenure in months.

Common Mistakes to Avoid While Using Axis Bank Credit Card EMI Calculator

• Enter correct values for amount, interest rate, and tenure.
• Don't forget to consider additional fees or charges that may not be included in the calculation.
• Try different tenures and credit card balance amounts to reach an EMI that fits your budget.
• Check the prepayment or foreclosure conditions for credit card EMIs.

Conclusion

The Axis Bank Credit Card EMI Calculator is a valuable tool that facilitates enhanced decision-making for your borrowings. It enables you to reach an EMI that fits within your monthly budget. The online tool simplifies the process of understanding the monthly payments, comparing offers, and planning finances effectively. It is helpful for those looking to explore a credit option to meet their financial needs.