Axis Bank Personal Loan Eligibility

What is a Personal Loan?

A personal loan is an unsecured loan that comes without the need for any collateral for availing the loan. Most banks and Non-Banking Financial Companies (NBFCs) offer personal loans in India. Since this is an unsecured loan, it is considered to be a high-risk loan. Thus, the interest rates applicable to personal loans can be significantly higher than secured loans. However, since an unsecured personal can be used for various purposes, it is ideal for immediate financial needs such as medical emergencies, travel etc.,

Different banks and financial institutions have different eligibility criteria for a personal loan. An applicant must qualify as per the criteria to be eligible to apply for a personal loan. This is why it is important to know the eligibility criteria and also the different factors which affect loan application. If an applicant is aware of the criteria before the application, he/she can avoid any chances of being rejected by the bank. This will save the applicant from having an adverse credit score.

What is Personal Loan Eligibility?

Most banks lay out strict eligibility criteria depending on the applicant’s age, salary, residing location, employment factors, credit score, etc. An ideal customer for any bank would be a person who has a credit score of at least 750. This reflects that the individual is reliable and poses the least risk of default. The lender will also tag maximum and minimum loan amount eligibility based on an applicant’s repayment capacity. This is calculated based on one’s disposable income.

Who can take a Personal Loan?

• Salaried Employees
• Doctors
• Employees working in public and private limited companies
• Government sector employees including Public Sector Undertakings, Central and Local bodies
• The minimum age should be 21 years and a maximum of 60 years at the time of maturity of the Personal Loan
• Minimum monthly income – Rs. 15,000

Document required for Salaried Personal loans

• Duly filled application form
• KYC documents
• Loan Agreement duly signed and Standing Instruction (SI) Request / ECS Forms

How to Improve Your Chances of Getting an Axis Bank Personal Loan?

If you are looking to improve your chances of easily getting an Axis bank personal loan, here are some useful tips to follow:

• Improved credit history– Axis bank focuses on your credit score as it is a crucial indicator of your debt-handling history and habits. Thus, while applying for a personal loan, make sure that you have a good credit score. If you have a poor credit score, work towards improving it and focus on areas that can help in improving your credit score. Increasing your credit limit, making EMI payments on time, and keeping a healthy mix of secured and unsecured loans within your portfolio are smart ways of improving your credit score.
• Better debt to income ratio – If you can increase your income and minimise your debt levels, there can be a substantial reduction in your debt-to-income ratio. Axis bank focuses on this ratio of any borrower before lending a personal loan. A lower ratio indicates that you have lower debts at present. This allows you to easily get a personal loan at reasonable interest rates.
• Include a co-applicant – If your credit score is poor, it is important to get a co-applicant added (who has a better credit history and higher income) for improving the chances of the personal loan application being approved. If there is a co-signor with an equal stake in the debt repayment, it makes for a great option of improving your loan eligibility in the eyes of Axis bank.

FAQ for Axis Bank Personal Loan Eligibility