Everything You Need To Know About Axis Bank Personal Loan EMI

You must have heard people saying that they have to set aside a definite amount towards their EMIs. During these situations, you must have wondered about the meaning of the EMI amount. Well, do you know that when you opt for an Axis Bank personal loan or any other kind of loan from any bank of a financial institution, you will need to repay the amount via Fixed Monthly Installments? This installment is known as the EMI amount. What is different in the EMI amount from a regular monthly installment is that the EMI amount consists of a portion of both principal and interest amount.

Axis Bank Personal Loan EMI is the amount that an individual needs to pay every month on a fixed date so that you can repay the outstanding loan amount within a fixed time frame. As you know that you can choose the Axis Bank personal loan tenure according to your convenience. So let’s say you have chosen 48-months tenure, then there will be 48 monthly installments towards the loan repayment. In this article, we will be covering the concept of EMI in the case of a personal loan from Axis Bank. Also, you can see the change in the EMI amount when you choose a Balance Transfer facility. So, let’s start.

How Does EMI Work in the case of an Axis Bank Personal Loan?

If you need to understand the concept of EMI in the case of a personal loan, then understand it in this way - The total payable amount is divided into equal amounts as per the repayment tenure chosen by you. Let’s understand this with an example.

Suppose an individual wants to borrow INR 4,50,000 for a period of 5 years (60 months). Axis Bank personal loan interest rate on this amount is 15.50% per annum. So, what will be the amount that he needs to pay every month towards repayment of the loan?

Well, for this amount, the individual needs to pay an EMI of INR 10,824. It means, for the next 60 months, he would be paying this amount every month. Other than this, he would also need to pay a certain interest on the loan amount that will be INR 1,99,436. If you are thinking about how did we calculate the EMI amount for this loan amount, then we would like to tell you, that you can use the Personal Loan EMI Calculator. With this tool, you only need to fill in a few personal details, and you will get instant results.

Change in EMI when you Choose Axis Bank Personal Loan Balance Transfer Facility

With the Balance Transfer Facility, which is one of the most important facilities offered by banks, an individual can transfer their outstanding principal balance to another lender at lower interest rates. This transfer will help you getting you a lower EMI amount than your existing one. Other than this, you can also save on overall interest outgo.

Let’s understand with an example. Suppose an individual has a 5-year personal loan of INR 5 lakh at an interest rate of 18.99% per annum. For this amount, he must be paying an EMI of INR 12,968. Now, after two years he wants to opt for the Axis Bank Personal Loan Balance Transfer facility. Until now, he has paid the interest outgo of INR 1,65,032.

At this time, the principal outstanding balance will be INR 3,58,811. Now, when doing the balance transfer facility, the new EMI according to the interest rate of 12.99% per annum would be INR 11,920. So, you can see the change in the EMI amount on choosing the balance transfer facility.