Home Loan Calculator for

Axis Bank

Axis Bank Home Loan EMI Calculator

Private lender Axis Bank offers a wide range of loan products such as vehicle, personal, and home loans. Axis Bank offers home loans starting from ₹3 lakh, with benefits including a longer tenure of up to 30 years, smaller EMIs, and competitive interest rates.

The country’s third-largest private lender also provides an online home loan EMI calculator, allowing prospective borrowers to compute their EMIs before taking out a home loan.

What is the Axis Bank Home Loan EMI Calculator?

The Axis Bank Home Loan EMI Calculator is a helpful online tool that allows customers to compute the EMI for a home loan by entering the principal amount, rate of interest, and loan tenure. The calculator uses a mathematical formula to determine the monthly instalment of a home loan.

How to Use the Axis Bank Home Loan EMI Calculator

• Open the EMI calculator.
• Enter the loan amount.
• Enter the rate of interest of the bank.
• Enter the tenure (in years or months).

The calculator will compute and display the EMI amount. It will also show the loan amount, interest component to be repaid, and the total amount (principal and interest rate) to be paid back over the loan tenure.

Factors Affecting Home Loan EMI

• Loan Tenure: The loan tenure affects the EMI amount. A shorter tenure results in a higher EMI, while a longer tenure results in a lower EMI. However, a longer tenure will result in a higher interest component.
• Interest Rate: Lower interest rates result in a lower EMI.
• Principal Amount: A higher loan amount leads to a higher EMI, while a lower loan amount leads to a lower EMI.
• Floating or Fixed Interest Rate: The EMI amount is affected by whether the interest rate is fixed or floating. A fixed interest rate remains unchanged throughout the loan tenure, while a floating rate changes based on market conditions.

Benefits of Using the Axis Bank Home Loan EMI Calculator

• The EMI calculator helps in financial planning by providing an estimated EMI before a loan is taken.
• It allows borrowers to compare various loan options and offers from different lenders for a specific loan amount and tenure.
• The calculator saves time by providing instant results.
• It offers a detailed breakdown of the principal and interest amounts to be repaid.

Axis Bank Home Loan Interest Rates and Tenure

Axis Bank offers home loans with an interest rate of up to 14%, depending on the CIBIL score. Home loans are available for up to 30 years for purchasing houses, apartments, and plots. The interest rates for floating rate loans range from 8.75% to 9.15%, depending on the credit score and loan duration.

Understanding EMI and Its Components

The EMI amount consists of the principal amount and interest payments. The principal amount is used to repay the total loan taken from the bank, while the interest component is the cost of borrowing the loan. The interest component is higher in the initial years of repayment and decreases over time.

The formula used to compute the EMI is:

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

• P = Principal amount
• R = Interest rate
• N = Repayment tenure (in months)

Advantages of Calculating EMI Before Applying for a Loan

• Helps in better budgeting.
• Provides accurate EMI calculations.
• Prevents over-borrowing.
• Facilitates comparison of various loan options.

Common Mistakes to Avoid While Using EMI Calculators

• Enter the loan amount carefully; minor errors can lead to incorrect EMI calculations.
• Ensure the loan tenure is entered correctly, converting years to months or vice versa as required.
• Consider additional costs such as file charges and taxes, which can increase the total cost of the home loan.

Conclusion

The Axis Bank Home Loan EMI Calculator is a convenient tool for computing monthly instalments. It helps borrowers understand their EMI before taking out a loan, plan the tenure and principal amount according to their budget, and avoid common errors during the calculation process.