Axis Bank Home Loan Calculator: The Tool You Need to Get the Best Deal
Owning a home is a constant dream for many of us living in India. Many of us have been living in rented houses and have dreams of it from an early age. However, as we get older and understand things better, we realise how difficult getting a home actually is. So, we start to understand home loans, but superficially.
You can forget those days as the Axis Bank Home Loan Calculator aims to solve that exact issue.
This article will explain what a home loan calculator is and how it works. Then, diving deeper, we will cover topics like EMI calculation and loan amortisation schedules.
Furthermore, we will uncover the factors that determine the EMI amount in a home loan. And the last section will pertain to different home loan options we can go for today.
Understanding the Axis Bank Home Loan Calculator
As stated, owning a home is a dream everyone has. Some of us want to build our own homes from the ground up, while others desire the apartment lifestyle. Whichever it might be, a home loan is something that is always needed.
That said, there are many things that accompany a home loan, and one of those things is the EMI or Equated Monthly Instalment. EMI is the amount the borrowers must pay back to the lender every month until the tenure runs out or the loan is foreclosed. This is an amount that is calculated based on the principal amount, rate of interest and tenure. A typical EMI payment pays off the principal while also paying the interest.
Now, real estate in India is quite expensive, and the prices do not seem to slow down in their journey to the top. Once the principal lending amount is fixed, it is up to the applicant to decide the tenure. The tenure and EMI are inversely proportional. But too long of a tenure also draws in a lot of interest. So buyers need to be careful while they chop and choose the EMI they are comfortable with.
This is where a home loan EMI calculator comes in. It is a very easy-to-use and amazing tool.
How does the Axis Bank EMI Calculator work?
Like most banks, Axis Bank also gives out home loans to individuals looking to buy a house. While the potential owners can walk into the bank anytime and enquire about a home loan, getting all the information sitting at home is also possible.
With the advent of the digital era, many financial services are now available online, EMI calculation being one of them.
Once a user visits the Axis Bank Home Loan EMI Calculator website, they can start using the portal to make their calculations. But first, let’s understand how to use it.
- Above is an image of how the calculator looks. It may seem intimidating at first, but most of it is automated.
- Use the slider or text box on the top left to set the loan amount. This is also known as the principal amount in a loan.
- Setting the interest rate per annum is also pretty easy. Just use the slider like above. You can find out the exact rate by enquiring at the bank or just browsing the website.
- At last, use the slider and set a tenure you think you are comfortable with.
Once all these three details are entered, the grey section in between that reads Equated Monthly Instalments (EMI) will display the EMI you would have to pay. For additional information, you can also take a look at the Break-up Total Payment section, which will let you see the Principal Amount and Interest Amount separately. Together, they form the Total Amount Payable.
The Axis Bank housing loan EMI calculator provides all the necessary details to loan applicants within the blink of an eye. Instead of asking customer care representatives at the bank or over the phone, users can simply log on and experiment for themselves.
How EMI Calculation help in Purchasing a Home?
As we have learned that Equated Monthly Instalment (EMI) is the amount that the borrower must pay back to the lender until the tenure has run its course, we will now understand why calculating it beforehand is so beneficial.
A home loan can last for varied durations of time, and that discretion is completely up to the borrower. However, the choice of tenure must be within the parameters offered by the bank or NBFC (Non-Banking Finance Company).
For instance, if a borrower wishes to take a loan of ₹20,00,000 at 8% interest per annum, they can choose the tenure to be fifteen years. In such a case, the EMI would come up to ₹19,113, and the total interest amount would be ₹14,40,348.
However, things change quite a lot if the same principal amount and interest rate are calculated along with a thirty-year tenure. The EMI comes down to ₹14,675, but the total interest amount shoots up to ₹32,83,105.
The conclusion we can draw from this is that the Tenure is inversely proportional to the EMI and directly proportional to the total interest amount.
Both of the above scenarios are completely hypothetical but present two very different pictures. The Axis Bank home loan calculator clearly shows its importance by allowing the borrower to choose between low and high EMI amounts. It also shows the changes in the interest amount.
At the end of the day, it is the borrower’s decision. They can opt for a long, drawn-out loan with a manageable EMI and high total interest amount or a slightly higher EMI, shorter tenure and lower total interest amount. This calculator helps potential homeowners decide what kind of a future they are comfortable with.
What is the Loan Amortisation Schedule, and how does it help?
The Axis Bank loan amortisation schedule is a tabular representation that shows the amount owed to the bank in the case of level-payment loans. A level-payment loan is one in which the borrower pays the same amount each month until the tenure runs out.
An amortisation schedule shares various details with the borrower. Looking at the table below will help you understand it further.
Suppose a borrower applies for a loan worth ₹20,00,000 at 8% interest for ten years. The EMI, in that case, would be ₹24,266, and the total interest amount would be ₹9,11,862. However, the table below the calculator shows the amortisation schedule.
The leftmost column denotes the year; since the tenure is ten years, there are ten rows. The second column denotes the Opening Balance at the beginning of each year. Year 1 starts with ₹20,00,000 since that is the principal amount, and no dues have been cleared so far. The next row denotes the Interest paid during the year, followed by the Principal repaid during the year and Closing Balance at the end.
Every EMI is made up of two components: Principal and Interest. Here’s a formula to calculate the total interest due on a loan: Principal Amount X Rate of Interest.
In this case, the Principal Amount is ₹20,00,000, and interest is 8% per annum. So the Total Interest Amount on the loan is 20,00,000 X 8/100. The resulting interest amount is ₹16,00,000. To calculate the yearly interest, simply divide it by 10: 16,00,000/10. This comes up to ₹1,60,000. Since the home loan also carries a few charges and rebates, the amount is not exactly ₹1,60,000.
To calculate the principal paid during the year, you can subtract the Closing Balance from the Opening Balance. In this case, it will be 1863895-2000000, which equals to ₹1,36,105.
To make sure it all ties in together, you can add the principal repaid during the year to the Interest paid during the year and divide it by 12 to get your EMI. In this case, that would be 1,36,105+1,55,081= 2,91,186
2,91,186/12= 24,265.5
The calculation works similarly in the row below with just one change. The closing balance from the previous year becomes the opening balance for the current year.
While applying for an Axis Bank home loan, every applicant gets an amortisation schedule which portrays the same details explained above. Using this, everyone can understand how much of the interest and principal are paid each year.
Why should you use the Axis Bank Home Loan Calculator?
Using the online calculator has its own set of benefits. Let’s take a look at them.
1. Free for Everyone
You can use the home loan calculator for free anytime and anywhere. It is a tool on the internet and does not ask any questions to its users other than the details needed (principal amount, tenure and rate of interest).
2. Error Free
Using a calculator is always better than trying to calculate the EMI manually. It completely negates the chance of making an error. All you need to do is correctly enter the principal amount, tenure and interest rate. The calculator does the rest.
3. Saves Time
Time is money for everyone, and manually calculating the EMI is very time-consuming. In addition, it involves numerous complex calculations. The calculator does this within the blink of an eye and saves a bunch of time.
What are the Factors Affecting Home Loan EMIs?
Numerous factors determine the EMI for your home loan. Once eligible, you can apply for a home loan anywhere. That said, it is always useful to keep these factors in mind.
1. Rate of Interest
The rate of interest determines the amount you pay as interest to borrow the principal amount. While applying for a loan, you can choose to go for either a floating or a fixed interest rate. The former implies a fluctuating rate of interest which changes based on the calls made by the Reserve Bank of India (RBI) and the international market. The latter, however, remains fixed throughout the tenure of the loan.
2. Tenure
Tenure is one of the most important factors determining the EMI in a home loan. Even a minute change in the duration can result in drastic changes. As explained earlier, the tenure is inversely proportional to the EMI. But a higher tenure level also means more interest to be paid.
3. Prepayment
Prepayment of a home loan also alters the EMI a lot. Prepayment implies an advance payment on the principal amount. You may do this to clear the loan completely or clear a part of it. However, most lenders charge a penalty on prepayments, so evaluating your risks against the rewards is very important. However, borrowers need not worry with an Axis Bank Loan as there are no prepayment penalties.
4. Down Payment
A down payment is an amount to pay before taking the loan. This is very common for people who buy apartments. The minimum rate of a down payment is 20% of the cost of the house, but potential owners can choose to pay more. The higher the down payment, the lower the principal amount of the loan. As a result, the EMI also falls as the down payment rises.
5. Lenders
Every lender has pros and cons attached to them. The rate of interest can also vary from lender to lender. However, they need to be within the parameters set by the RBI. You can even switch lenders whilst the loan is being repaid. The process is pretty straightforward and can be completed by filling out the necessary paperwork.
Axis Bank Home Loan EMI for Different Amounts
Indians apply for home loans worth different amounts every day. However, some are more common than others. So let’s quickly check the different EMIs for these amounts.
The rate of interest has been fixed at 14% for this illustration.
| Principal Amount | EMI with a 10-year tenure | EMI with a 20-year tenure | EMI with a 30-year tenure |
| ₹10,00,000 | ₹15,527 | ₹12,435 | ₹11,849 |
| ₹20,00,000 | ₹31,053 | ₹24,870 | ₹23,697 |
| ₹30,00,000 | ₹46,580 | ₹37,306 | ₹35,546 |
| ₹40,00,000 | ₹62,107 | ₹49,741 | ₹47,395 |
| ₹50,00,000 | ₹77,633 | ₹62,176 | ₹59,244 |
As is showcased above, the EMI goes down as the number of years increases. However, it would be best if you always remembered that the amount of interest to be paid also rises with the tenure.
Comparison of Different Home Loans
The following table compares popular lenders’ interest rates and processing fees across India.
| Bank | Rate of Interest per annum | Processing Fees |
| Axis Bank | 8.60% onwards | ₹10,000 (fixed) |
| State Bank of India (SBI) | 8.75% onwards | 0.35% onwards |
| HDFC | 8.60% onwards | 0.5% or ₹3,000 whichever is more |
| IDBI | 8.75% onwards | 0.5% (₹2,000-₹5,000) |
| Kotak Mahindra | 8.65% onwards | 0.5% |
| Punjab National Bank (PNB) | 8.55% onwards | 0.35% (maximum: ₹15,000) |
| Bank of Baroda (BOB) | 8.60% onwards | Discretion of the bank |
| Union Bank of India (UBI) | 8.60% onwards | Discretion of the bank |
| IDFC First Bank | 8.75% onwards | ₹5,000 (fixed) |
| Bank of India (BOI) | 8.65% onwards | Discretion of the bank |
We have gone through multiple important topics pertaining to a home in this article. We have talked about the home loan EMI calculator, how it works and why it is important. Additionally, we now also know how to read the loan amortisation schedule. The factors determining the EMI have also been covered, along with how Axis Bank Home Loans work with different principal amounts and tenures. In the end, we got a glimpse of the offers from different lenders and how they stand up to each other.
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