Monthly EMI | ₹ |
Principal amount | ₹ |
Total interest | ₹ |
Total amount | ₹ |
Your Amortization Details (Yearly/Monthly)
Equated Monthly Installments (EMIs) is the credit mechanism or instrument employed by financial institutions as the repayment schedule for a loan availed to a borrower.
EMI divides the entire corpus payable into equal installments. A borrower needs to pay a fixed amount of EMI every calendar month over the repayment period of the loan, also known as the loan tenure. An EMI comprises of both principal and interest components. This facility makes loan availability more convenient and accessible for borrowers.
EMIs are applicable across all forms of loan, i.e. personal loans, home loans, business loans, car loans, etc. The EMI amount is calculated based on – loan amount, repayment tenure, and rate of interest. You can calculate your EMI using an Axis Bank EMI calculator.
Axis Bank is the 4th largest private sector bank in India in terms of market capitalisation. It offers a wide array of financial services and products and is renowned for its state-of-the-art facilities.
It has played an essential role in improving the credit market in India. It offers loans which come with affordable interest rates and convenient repayment tenures to help borrowers spread the financial weightage of a loan across EMIs as per your affordability and convenience.
The Axis Bank loan calculator can offer significant advantages when availing a loan. These are –
An EMI calculator integrates the following formula into its functioning –
EMI = {P * R * (1 + R) ^ N} / {(1 + R) ^ (N – 1)}
The variables of the formula are mentioned below –
Example: Mr. B applies for a housing loan for Rs. 35 Lakh on the 1st of April at an interest rate of 8.9%. The repayment tenure of the loan is settled at 25 years or 300 months.
Therefore, EMI = {(35000000 * 0.089 * (1 + 0.089) ^ 300) / {(1 + 0.089) ^ (300 – 1)}
Or, EMI = Rs. 23,133.
You can calculate the same using an Axis EMI calculator.
The amortisation schedule is a table which contains data which are relevant to the loan. These data include –
The following table shows the amortisation schedule of the example stated above.
Number of months | Principal (Rs.) | Interest (Rs.) | EMI (Interest + Principal) | Balance (Rs.) |
1 | 3174 | 25958 | 29,133 | 3496826 |
2 | 3198 | 25935 | 29,133 | 3493628 |
3 | 3221 | 25911 | 29,133 | 3490406 |
4 | 3245 | 25887 | 29,133 | 3487161 |
5 | 3269 | 25863 | 29,133 | 3493892 |
6 | 3294 | 25839 | 29,133 | 3480598 |
7 | 3318 | 25814 | 29,133 | 2477280 |
8 | 3343 | 25790 | 29,133 | 3473937 |
9 | 3368 | 25765 | 29,133 | 3470570 |
10 | 3393 | 25740 | 29,133 | 3467177 |
11 | 3418 | 25715 | 29,133 | 3463759 |
12 | 3443 | 25690 | 29,133 | 3460316 |
13 | 3469 | 25664 | 29,133 | 3456848 |
14 | 3494 | 25638 | 29,133 | 3453353 |
15 | 3520 | 25612 | 29,133 | 3449833 |
The principal component is significantly lower compared to the interest component during the initial years. In the later years, the principal amount exceeds the interest amount.
The benefits of Groww’s EMI calculator are as follows –
EMI calculation is a crucial task when applying for a loan. Based on your affordability, you can decide the scale of your EMI. Shorter repayment tenure attracts larger EMIs; however, the total interest payable significantly reduces. On the other hand longer tenure leads to lower EMIs but increases the total interest payable substantially. Therefore, you need to carefully assess your expenses and income and calculate the EMIs with the help of calculators like the Groww or Axis Bank EMI calculator to decide which principal-tenure combination would ideally complement your credit requirement and affordability.