Axis Bank Personal Loan EMI: If you’re planning to take a personal loan, one of the biggest questions is – how much EMI will you pay every month? Many people explore Axis Bank Personal Loan options, especially for larger amounts like ₹20 lakh, which can cover big expenses such as home renovation, wedding, higher education, or medical needs.
In this guide, we will explain:
- Axis Bank personal loan EMI on ₹20 lakh for 4, 5, and 6 years
- How EMI is calculated
- Factors that affect EMI
- Tips to reduce your EMI burden
- FAQs for clarity
What is EMI in a Personal Loan?
EMI (Equated Monthly Installment) is the fixed monthly amount you pay to the bank to repay your loan. It includes both principal and interest. The EMI depends on:
- Loan Amount (₹20 lakh in this case)
- Tenure (4 to 6 years)
- Interest Rate (Axis Bank generally offers 10.25% to 22% p.a.)
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Axis Bank Personal Loan EMI on ₹20 Lakh
Here’s an estimated EMI calculation for a ₹20 lakh loan at an average interest rate of 12% p.a.
| Loan Tenure | Monthly EMI (Approx.) | Total Payment | Interest Paid |
|---|---|---|---|
| 4 Years (48 months) | ₹52,700 | ₹25.30 lakh | ₹5.30 lakh |
| 5 Years (60 months) | ₹44,500 | ₹26.70 lakh | ₹6.70 lakh |
| 6 Years (72 months) | ₹37,400 | ₹26.93 lakh | ₹7.93 lakh |
(Note: EMIs may vary based on your credit score, interest rate, and Axis Bank’s terms.)
How is EMI Calculated?
The EMI is calculated using the formula:
EMI = [P x R x (1+R)^N] / [(1+R)^N – 1]
Where:
- P = Principal Loan Amount (₹20,00,000)
- R = Monthly Interest Rate (Annual Rate/12/100)
- N = Tenure in months
Factors Affecting Your EMI
- Credit Score – Higher score = lower interest = lower EMI.
- Loan Tenure – Longer tenure reduces EMI but increases total interest.
- Interest Rate – A small difference in rate can save lakhs over time.
- Income & Employment – Higher income improves eligibility for better rates.
Tips to Manage or Reduce EMI
- Choose Longer Tenure – Reduces monthly burden.
- Improve Credit Score – Helps get lower interest.
- Part Prepayment – Paying extra reduces total interest.
- Balance Transfer – Shift loan to a bank offering lower rates.
Why Choose Axis Bank Personal Loan?
- Loan up to ₹40 lakh
- Flexible tenure (12 to 84 months)
- No collateral required
- Quick online approval
- Competitive interest rates
FAQs
Q1. What is the minimum salary for ₹20 lakh loan in Axis Bank?
Usually, ₹30,000–₹40,000 monthly income is required, but it depends on your profile and credit score.
Q2. Can I prepay my Axis Bank personal loan?
Yes, after 12 EMIs, you can prepay or foreclose with nominal charges.
Q3. Which tenure is better – 4, 5, or 6 years?
If you want lower EMI, go for 6 years. If you want to save interest, 4 years is better.
Q4. Does Axis Bank check CIBIL score?
Yes, a CIBIL score of 700+ improves your chances of approval.
Disclaimer: This article is for general information only. The interest rates and terms mentioned in it depend on the policies of the bank . These may change from time to time. Before taking any type of loan, get complete information from your bank.