Axis Bank was formed in 1994 and was jointly promoted by Specified Undertaking of Unit Trust of India (SUUTI – formerly known as United Trust of India), General Insurance Corporation of India (GIC), Life Insurance Corporation of India (LIC), National Insurance Company Limited, The Oriental Insurance Company Limited, The New India Assurance Company Limited and United India Insurance Company Limited. It is headquartered in Ahmedabad. At the moment, the Axis Bank is the third-largest private sector bank in the country and offers a host of finance option, including new car loans. It operates through a network of more than 3,120 branches spread across the country.
All the available car loan EMI calculators in the market work on a standard formula and same is the case with the Axis Bank car loan calculator. It figures out the EMI using the below formula –
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]
‘P’ stands for the Principal amount
‘R’ stands for the monthly rate of interest
‘N’ stands for the number of instalments
It is important to understand here that the formula that has been provided above doesn’t account for the pre-payment that one can make towards the loan taken from Axis Bank.
Thanks to the several finance options that are available, today, buying a car is almost within the reach of many. One can simply avail a new car loan from Axis Bank and drive home his or gear dream car. Currently, Axis Bank offers new car loans at a rate of interest ranging from as low as 8.80%. It also charges a fairly low processing fee and offers a repayment tenure of up to 7 years. Not just this, it even offers a higher loan-to-value ratio, with up to 100% on-road price funding. Axis Bank offers car loans to not just salaried employees but even to proprietorship firms, partnership firms, companies, trusts, and societies.
I order to make the loan repayment easy, all banks offer the EMI (Equated Monthly Instalment) facility. Therefore, before you apply for a car loan, you need to plan things efficiently. And this is where the Axis Bank Car Loan EMI calculator comes in hand. At the moment, the new car loan interest rates that the Axis Bank offers is 8.8% to 11.05%. However, at 9.5% rate of interest, the EMI per lakh for the total amount comes out to be Rs 8,768 for a 1-year loan and Rs 4,591 for a 2-year loan.
|Loan Amount||2 Year Loan||4 Year Loan||7 Year Loan|
|Rs 3 Lakh||Rs 13,774||Rs 7,537||Rs 4,903|
|Rs 6 Lakh||Rs 27,549||Rs 15,074||Rs 9,806|
|Rs 12 Lakh||Rs 55,097||Rs 30,148||Rs 19,613|
|Loan Amount||2 Years||3 Years||5 Years||7 Years|
|1 Lakh||Rs 4,477||Rs 3,088||Rs 1,980||Rs 1,509|
|3 Lakh||Rs 13,432||Rs 9,263||Rs 5,940||Rs 4,528|
|5 Lakh||Rs 22,386||Rs 15,439||Rs 9,901||Rs 7,546|
|10 Lakh||Rs 44,773||Rs 30,877||Rs 19,801||Rs 15,093|
The table we have given below shows that longer the loan tenure, lower. is the EMI you need to pay to the lender every month. However, the interest you end up paying is considerably more for a given amount in case your loan tenure is longer. For example, if you take a loan of Rs 1,00,000 for a period of 5 years, you need to pay the lowest EMI of Rs 2,028. However, you end up paying Rs 21,658 in interest on a loan of Rs 1,00,000.
On the hand, in case you borrow Rs 1,00,000 from State Bank of India at the lowest available rate for a period of 2 years, you end up paying a higher vehicle loan EMI of Rs 4,523, while paying an interest of just Rs 8,546, which, in contrast, is less than half of what you would pay for the same loan amount borrowed for a tenure of 5 years.
|Vehicle Loan EMI for ₹ 1 Lakh loan amount at 9% interest rate offered by Axis Bank for different tenures||2 Years||3 Years||5 Years|
|Axis Bank EMI for a loan amount Rs 1 Lakh at 8.00%||Rs 4,477||Rs 3,134||Rs 2,028|
|Total amount you pay, including interest||Rs 1,08,546||Rs 1,12,811||Rs 1,21,658|
|Total interest paid||Rs 8,546||Rs 12,811||Rs 21,658|
For any car loan, there are in all three factors that affect the EMI of the car loan taken from Axis Bank. The same has been given below –
For the uninitiated, an amortization schedule is nothing but a periodic table of regular loan payments that show the borrower about the principal component and interest component of every EMI that he has to pay until the loan is paid back completely. It is important to note here that EMI is a fixed sum that comprises of a fixed principal amount and a fixed interest. For example, in case you borrow Rs 2 lakh for 2 years at an interest rate of 9.25 per cent, the EMI for this loan amount will be Rs 9,160. The total annual EMIs that are required to be paid is Rs 1,09,919. The table we have below shows the EMI schedule for 2 years –
|Year||Interest Paid During The Year||Principal Repaid During The Year||Total Amount Paid During The Year (Interest + Principal)||Outstanding Principal|
|2020||Rs 3,025||Rs 15,295||Rs 18,320||Rs 1,84,705|
|2021||Rs 13,047||Rs 96,872||Rs 1,09,919||Rs 87,832|
|2022||Rs 3,767||Rs 87,832||Rs 91,599||Rs 0|
All available car loan EMI calculators work on the same forumla, which is –
EMI = [P x R x (1+R) ^N] / [(1+R) ^N – 1]
P stands for the principal amount (basically the money you borrow)
r is the rate of interest per month which is calculated as rate of annual income/ (12*100)
n is the loan tenure of loan in months
E is the EMI (equated monthly payment)
Before going ahead and applying for a used or new car loan at Axis Bank, the below factors should be considered very seriously –
Multiplier based loan amount eligibility – Axis Bank calculates the loan eligibility by applying a multiplier to your net take-home income. In most cases, the result turns out to be 2.5 to 3 times the annual income for salaried individuals and 6 times the annual income for self-employed professionals. Also, this multiplier is calculated based on your employer company’s reputation, stability, size and growth in turnover.
FOIR based loan amount eligibility – The Axis Bank even calculates your Fixed Income to Obligations Ratio (FOIR) to get to know the maximum EMI you can pay on basis of your current income and other monthly expenses. The proportion of fixed income to your calculated fixed obligations gives your FOIR. In most cases, banks are known to lend up to a maximum FOIR of 0.50.
If you intend to pay back your car loan before the loan tenure gets over, you will need to pay a small penalty to the Axis Bank. It charges a part pre-payment penalty of 5 per cent on the outstanding principal. Axis Bank allows prepayment of a car loan after you’ve paid the first EMI. Through prepayment, you can reduce your loan tenure by paying the EMI for a shorter time period.
A: Yes, Axis Bank allows part-payment of the loa. However, you’ll have to pay a penalty of 5 per cent to the outstanding principal as part-payment charges.
A: In case you plan to take a car loan from Axis Bank, you can initiate the process through any of the below options –
– Online by visiting the home website of Axis Bank
– Visiting an Axis Bank branch that offers car loan services
– Calling the Axis Bank Call Centre.
A: The maximum possible new car loan amount you can get from Axis Bank depends on your eligibility criteria. At present, Axis Bank offers a minimum new car loan of Rs 1 lakh and offers finance of up to 100 per cent of the on-road price of the vehicle.
A: Yes, you can foreclose or pre-close your car loan after paying a fine of 5% of the outstanding principal.
A: You can get an Axis Bank car loan application form from any branch of the bank. You can also submit the form online.
A: After the submission of the loan application, Axis Bank follows the below procedure:
– Processing and approval of the application form
– Verification of documentation
– Sanctioning the loan
– Disbursement of the loan
A: Axis Bank processes car loan applications quickly if you have submitted all the required documents and meet the eligibility criteria.
A: In case of Axis Bank car loan, the car itself serves as security as it is hypothecated to the bank for until the loan is paid back.
A:Yes, you can cancel your loan application before it is sanctioned or disbursed. However, the bank will charge a penalty for the cancellation.