Axis Bank Loan Repayment

Here are the steps to be followed while making loan repayment through Axis Internet Banking:

• Log in to Axis Internet Banking
• Navigate to Payments and then Pay EMI
• Add New Biller 
• Select Loan EMI
• Enter the details & amount and click on proceed
• Enter the OTP and Confirm the payment

Axis Bank Loan Repayment Through UPI

Axis Bank also allows customers to make overdue loan repayments using UPI. This can be used for all kinds of retail loans, except NRI loans. Regular EMI payments are not allowed via UPI. Here’s how to go about it:

Step 1: Log in to the UPI app that you use.

Step 2: Create a UPI ID on the app by choosing your bank and the correct bank account registered to your mobile number. This is applicable if you are using UPI for the first time.

Step 3: Initiate a transaction to Loans.@axisbank such as Loans.PPR456789012345@axisbank.

Step 4: This VPA gets verified and the name linked to the loan account is displayed.

Step 5: Enter the amount and UPI PIN to make the payment.

Step 6: The payment confirmation status will show as - i) Name of Customer linked to Loan Account ii) Transaction Success/Failure iii) Failure reason (if any)

Repayment of Personal Loans in Axis Bank

Axis Bank personal loan has zero foreclosure fees and the bank also has no part payment charges. A personal loan can be availed with quick disbursal and the bank allows flexible end-use of the same. Some of the common uses of Axis bank personal loan include funding for vacation expenses, home renovation, organising a dream wedding and finances related to medical emergencies. Axis Bank offers personal loans ranging from Rs. 50,000 to Rs. 15 lakhs with flexible repayment tenure of 1 to 5 years.

Axis bank loan repayment comprises principal loan amount and the interest component. Borrowers can repay the loan in Equated Monthly Instalments or EMIs. These can be paid every month and also pre-paid as per the borrower’s financial ability.

Repayment of Home Loans in Axis Bank

Axis Bank offers housing loans to eligible customers at interest rates ranging from 6.90% p.a. on floating rate loans to 12% p.a. on fixed-rate loans. The loan tenure can be availed for a maximum of 30 years for floating-rate loans. Loan tenure of 20 years can be availed in the case of fixed-rate loans. The bank charges a processing fee of up to 1% of the loan amount (Min. Rs.10,000) of which Rs.2,500 plus GST is required to be paid upfront while making the loan application.

The bank provides an amortization or repayment schedule to all loan borrowers. This allows borrowers to keep a track of their EMIs. They can view the repayment schedule and understand the EMI payments to be made till the loan is completely paid off. Here is the information that one can find in a repayment schedule:

• Total number of paid and due EMIs
• EMI due dates
• The original principal amount on which interest is charged
• Principal and interest component of the EMI
• Balance principal amount, after each month’s EMI payment
• The annual rate of interest (fixed or floating)

Repayment of Business Loans in Axis Bank

Axis Bank offers comprehensive financial products and services to customers across India. The business loans offered by the bank come at an interest rate of 15.5% upwards with additional benefits. Axis Bank’s business loans can help cash-strapped or growing businesses with a capital boost. These can be used for expansion, purchase of machinery, business property or new ventures.

A business loan repayment schedule is a table of periodic loan payments which consists of the principal amount and the amount of interest. Businesses have to make each payment month on month until the loan is paid off at the end of the loan term. This schedule can be obtained from the bank. While the monthly EMI amount is equal across months, the proportion of interest payment and principal payment usually differs across months since the interest component decreases over the loan tenure.

How to plan loan repayment?

Loan repayment can worry some borrowers and can be the least important thing on other’s minds. However, missing an EMI payment or defaulting on a loan may have long-term impacts. The negative impact gets reflected on your credit report for nearly two to three years and can hamper your chances of borrowing a loan in the future. Hence, it makes sense to repay the loan on time without any delay.

Here are some of the things that you can consider if you are facing a cash crunch:

1. Repay expensive loans first

If you have multiple debts under your kitty, example credit card dues and personal loan, etc and are finding it hard to repay all of these simultaneously, try to pay off the expensive loan first. While both, personal loan and credit card loans are unsecured, the interest rates on credit cards are usually high and can go up to 40-45%, depending on the loan tenure. On the other hand, personal loan interest rates can range between 12 and 24%. Thus, you may feel like paying off your loan first since it can be of a longer duration as compared to your credit card dues. Always remember that the interest expense on credit cards can be exorbitant if you fail to make the payment on time.

2. Convert credit card dues into EMI

In case you have huge credit card dues that are pending, you can easily convert them into EMI. You can then begin repaying it monthly. In this case, the interest charged will be far lower as compared to when you pay the minimum amount due and carry over the remaining outstanding amount. The bank also charges a processing fee for converting the credit card dues into EMI. In some cases, the credit card limit will also be reduced correspondingly until you have fully paid it off.

3. Consolidate your debt

It doesn’t make sense to borrow a fresh loan for repaying an already existing loan. However, if you are facing financial stress, this can be a good alternative to come out of the stress. You can transfer your credit card dues to a fresh card that comes at a lower interest rate. On the other hand, you can borrow a personal loan and use the same for repaying your credit card dues. As the personal loan interest rates are lower, you will feel less pressured by the outstanding amount.

4. Compare total costs including interest rate

When you borrow a personal loan, always go through the list of charges applicable on pre-payment and any processing fees that are charged by the bank. These may look tiny as standalone amounts, however, altogether they can add up to your cost. While borrowing a loan, make sure to compare both cost and convenience offered before narrowing down on the bank and loan category. For example, Axis Bank does not levy a prepayment fee on personal loans and is, therefore, a good choice for borrowers.

5. Consider secured loans

When required, you can consider borrowing loans against financial investments such as Fixed Deposits, Debt or Equity Mutual Funds, Equity Shares, Listed Bonds, Life Insurance Policies and gold. Since these are secured loans, the interest rates are far lower as compared to personal loans and range between 10 to 14%. Also, you do have to sell or redeem your investment entirely. If you are in requirement of a large sum, these loans may not be ideal as the loan amount is restricted to a certain portion of your investment value.

Always keep a close watch on your loan repayment schedule and ensure that your credit score is maintained at a good level. This way, you can be on the bank’s good books and easily borrow a loan when you need.

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