A personal loan is one of the most popular loan facilities that individuals look to opt for when they want to fulfill their urgent financial needs such as funding their child’s education, travel, or buying the latest iPhone, or some medical emergency. Among all the lenders, a personal loan from the Axis Bank is quite a popular one. But one of the main things that individuals should need to keep in mind when going for a personal loan is the Axis Bank personal loan interest rate.
When you opt for a loan amount from Axis Bank or any other lender, you will need to pay this amount with the interest charged on it. Every lender has a different interest rate on their personal loan. Axis Bank personal loan interest rate generally varies from 12% per annum to 24% per annum. However, this is just a general range and the final rate will depend on a range of factors such as age, employment type, employment history, current residing city, monthly income, credit score, etc. Choosing a suitable rate can help you manage your finances.
Coming to effect on your EMI amount, you need to keep in your mind that the personal loan interest rate directly affects your repayment amount. The higher the personal loan interest rate, the higher will be the repayment amount. The reason: EMI amount consists of a part of the principal amount and a part of the interest amount. In this article, we will be telling you the same with an example along with the working of the Axis Bank personal loan EMI calculator. Keep reading to know more!
Use of Axis Bank Personal Loan EMI Calculator in Choosing the Suitable Interest Rate
As we told earlier how a higher interest rate can affect your EMI amount and you may end up defaulting on your loan. This is why it is essential to choose a rate according to your repayment capacity. Let’s understand this with an example. Suppose an individual who earns INR 40,000 per month wants to opt for a personal loan from Axis Bank of INR 8 lakh for 60 months. Now, he is confused between the suitable interest rate of 12.50% per annum and 20.30% per annum. Let’s see which one will be more suitable for him.
On taking the interest rate of 12.50% per annum, the EMI amount would be INR 17,998 while the interest outgo would be INR 2,79,901.
On the other hand, when we consider the interest rate of 20.30% per annum, the monthly installment would be INR 21,329 with a total interest amount of INR 4,79, 732.
From the above calculations, you can see there is a difference of around INR 3,000 in the EMI amount on choosing higher rates, while the difference is around INR 2 lakh when it comes to the interest outgo. So, it is quite clear that the individual should the Axis Bank personal loan interest rate of 12.50% per annum for his required loan amount. However, the final rate will be decided by the bank itself after assessing several factors.
Now you must be wondering about how did all calculations above happened. Well, you can use Axis Bank Personal Loan EMI Calculator to do all these calculations. You will only need to fill in a few details that are mentioned below. Do check.
- Required loan amount ranging from INR 50,000 to INR 15 lakh
- Axis Bank Personal loan interest rate (12% to 24% per annum)
- Required tenure up to 60 months
As soon as you put these details into the tool, you will get the EMI amount, interest outgo, and total amount payable within seconds. Other than this, you will also get to see the amortization table with which you can know about the principal outstanding balance at different points during your tenure.