A home loan is a form of credit offered by financial institutions and Non-banking Financial Companies (NBFCs) to individuals for purchasing or constructing a house.

Housing loans are a form of secured loans. Borrowers are to submit the papers of the property which they will either purchase or construct as collateral.

The repayment procedure involves EMI or Equated Monthly Instalment. EMIs comprise of two components – principal and interest. You need to pay a fixed amount as EMI every month until the repayment tenure is completed and the loan is repaid in full.

You can calculate your EMI through the Axis Bank Home Loan Calculator to reckon the cost of such loan which you need to incur. The EMI amount depends on three factors – the loan amount, the repayment tenure, and the rate of interest.

In this article

**How can a Home Loan Calculator from Axis Bank Help You?**

Axis Bank has a market capitalisation of $ 1.31 Trillion and is the fourth largest private sector bank in market capitalisation terms in India. It is a premier financial institution, offering a wide range of financial services and products.

The CLSS scheme under the Pradhan Mantri Awas Yojana (PMAY), which allows first-time homebuyers subsidy on home loan interests has significantly improved demand for home loans. Axis Bank has helped to meet this demand considerably, primarily because of its affordable interest rates on home loans.

The advantages of using the Axis Bank Home Loan Calculator are listed below –

**Accurate results:**It offers accurate EMI figures which you need to pay throughout the repayment tenure. The Axis home loan calculator is much more convenient than manual calculation, which is prone to mistakes.**Simple to use:**An Axis housing loan EMI calculator offers a user-friendly interface and is simple to use. You can easily derive your EMI amount by providing your loan amount, repayment tenure, and rate of interest.**Choose convenient EMI:**You can enter umpteen combinations of loan amount and repayment tenure in the Axis Bank Home Loan Calculator 2021 to determine which of them offers the most convenient EMI. Meticulously assess your expenses and affordability to decide more soundly.

**How Does an Axis Bank Home Loan Calculator Function?**

The formula for calculating EMI is as follows –

EMI = {P * R * (1 + R) ^ N} / {(1 + R) ^ (N – 1)}

In this formula –

- P is the principal or loan amount.
- R is the rate of interest.
- N is the repayment tenure in months.

An Axis Bank Home Loan Calculator integrates this formula to determine an EMI amount.

**Example: **Mr Ajay applies for a home loan of Rs 40 Lakh at a 9% rate of interest from Axis Bank. He opts for repayment tenure of 15 years or 180 months. Therefore, his monthly instalments towards repayment would be,

EMI = {4000000 * 0.09 * (1 + 0.09) ^ 180} / {(1 + 0.09) ^ (180 – 1)}

Or, EMI = Rs. 40,751

You can calculate the EMI much quicker using the Axis Bank home loan EMI calculator.

The details pertinent to monthly instalments are shown in an amortisation schedule.

**What is an Amortisation Schedule?**

An amortisation schedule is a table which shows the specifics informing you on your loan repayment state. These details include –

- EMI amount.
- The principal component of each EMI.
- The interest component of each EMI.
- The amount accrued at the beginning and end of each EMI payment.

The amortisation schedule for the above example is given below.

Number of months |
Principal (Rs.) |
Interest (Rs.) |
EMI (Interest + Principal) |
Outstanding amount (Rs.) |

1 | 10,751 | 30,000 | 40,751 | 39,89,429 |

2 | 10,650 | 29,921 | 40,751 | 39,78,779 |

3 | 10,730 | 29,841 | 40,751 | 39,68,050 |

4 | 10,810 | 29,760 | 40,751 | 39,57,293 |

5 | 10,891 | 29,679 | 40,751 | 39,46,348 |

6 | 10,973 | 29,598 | 40,751 | 39,35,375 |

7 | 11,055 | 29,515 | 40,751 | 39,24,320 |

8 | 11,138 | 29,432 | 40,751 | 39,13,181 |

9 | 11,222 | 29,349 | 40,751 | 39,01,959 |

10 | 11,306 | 29,265 | 40,751 | 38,90,653 |

11 | 11,391 | 29,180 | 40,751 | 38,79,263 |

12 | 11,476 | 29,094 | 40,751 | 38,67,787 |

13 | 11,562 | 29,008 | 40,751 | 38,56,224 |

14 | 11,649 | 28,922 | 40,751 | 38,44,575 |

15 | 11,736 | 28,834 | 40,751 | 38,32,839 |

You can see that in the initial EMIs, the interest element is much higher than the principal element. As the tenure further approaches, interest component reduces while the principal component increases.

**Benefits of Using Groww EMI Calculator?**

The benefits of using Groww’s Axis Bank Home Loan Calculator 2019 is mentioned below –

- It is free to use.
- You can use the Groww’s
**Axis Bank Home Loan Calculator**without registration. - It saves time on EMI calculation by providing accurate EMI figures.

EMI calculation is paramount to planning while availing a loan. It is a significant addition to your monthly expenses and without proper assessment and consideration might burden you down in future.

**FAQs**

**Who are eligible to apply for Axis Bank home loan?**

Salaried and self-employed individuals can apply for a home loan.

**What is the loan-to-value ratio?**

It is the portion of the property value which will be sanctioned by the bank as loan; the other portion should be paid by you as down payment.

**What is the LTV for Axis Bank home loans?**

The loan-to-value ratio or LTV as mandated by RBI is

Property Value |
LTV |

Above Rs. 75 Lakh
Within Rs. 30 Lakh and 75 Lakh |
75%
80% |

Less than Rs. 30 Lakh | 90% |

**What is the limit for home loan amount and repayment tenure?**

The minimum and maximum loan amount from Axis Bank is Rs. 1 Lakh and Rs. 5 Crore respectively. The repayment tenure allowed is 1 – 30 years.