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Overview
Personal loan is typically the last resort for any individual who is unable to source required funds from elsewhere. Personal loan is also called multipurpose loan, it can be used for various needs including home improvement, shopping, medical expenses etc. Personal loans are unsecured loans and hence, do not require any collateral. These loans are extended solely based on the credibility of the applicant.
What is personal loan?
Personal loan is a type of unsecured loan, which is extended to the applicant based on the individual’s credibility which is reflected through the credit score. There is no requirement for any collateral in the form of any asset. Given the inherent risk of default in this case, the banks tend to balance off the additional risk by charging a higher rate of interest. These loans are for shorter tenure typically for 6 months to 5 years. The tenure may vary from bank to bank. The interest rate is determined based on the credit score of the applicant.
Personal loan is extended as a lumpsum to the applicant, the same has to be repaid by the individual in equal monthly installments (EMI) over the pre-determined tenure. The EMI includes both interest and principal.
Axis Bank personal loan interest rates
Axis Bank extends personal loan with minimum quantum of loan at Rs. 50,000 and maximum of Rs. 1.5 Lakhs. The documentation is minimal and the interest rates are attractive. The interest rates for tenure upto 36 months is as mentioned below –
Personal Loan Charges
| Fixed Rate Loan | 1 Yr MCLR | Spread over MCLR | Effective ROI | Reset |
|---|---|---|---|---|
| Personal Loan | 8.85% | 6.90%-15.15% | 15.75%-24% | No Reset |
Following are the charges involved related to Axis Bank personal loan
| Loan Processing Charges | 1.50% to 2.00% + GST as applicable |
|---|---|
| Cheque Bounce Charges | Rs. 500 per cheque bounce + GST as applicable |
| Cheque/Instrument Swap Charges | Rs. 500 per instance + GST as applicable |
| Prepayment/ Foreclosure Charges | Nil |
| Default Interest Rate | @24.00% per annum i.e. 2% per month on the overdue instalment |
| Duplicate Statement Issuance Charges | Duplicate Amortization Schedule Charges |
| Duplicate Interest Certificate (Provisional/ Actual) Issuance Charges | Duplicate NOC Issuance Charges |
| Rs. 250 per instance + GST as applicable | Rs. 250 per instance + GST as applicable |
| Rs. 250 per instance + GST as applicable | Rs 500 per instance + GST as applicable |
| Credit score Report Issuance Charges Stamp Duty Charges | Rs. 50/- per instance per set + GST as applicable As per State Stamp Act |
| Issuance Charges for Photocopy of Loan Agreement/ Documents | Rs. 250 per instance + GST as applicable |
Interest rate and schedule of charges for personal loans with tenure more than 36 months
| Rate of Interest | 15.75% to 24% |
|---|---|
| 1.50% to 2.00% + GST as applicableLoan Processing | Charges |
| Cheque Bounce Charges | Rs. 500 per cheque bounce + GST as applicable |
| Rs. 500 per cheque bounce + GST as applicable | Rs. 500 per instance + GST as applicable |
| Prepayment/ Foreclosure Charges | Nil |
| Default Interest Rate | @24.00% per annum i.e. 2% per month on the overdue installment |
| Duplicate Statement Issuance Charges Duplicate Amortization Schedule Charges Duplicate Interest Certificate (Provisional/ Actual) Issuance Charges | Rs. 250 per instance + GST as applicable Rs. 250 per instance + GST as applicable Rs. 250 per instance + GST as applicable |
| Credit score Report Issuance Charges Stamp Duty Charges | Rs. 50/- per instance per set + GST as applicable As per State Stamp Act |
| Issuance Charges for Photocopy of Loan Agreement/ Documents | Rs. 250 per instance + GST as applicable |
How can an individual apply for personal loan in Axis Bank?
There are several ways of applying for Axis Bank personal loan:
- Apply directly online at the bank’s official website
- Visit the nearest branch with the required documents
- Contact the customer care department
How to calculate EMI on personal loan extended by Axis Bank?
There is an EMI calculator on the official website of Axis Bank, the same should be used to calculate the EMI accurately. Alternatively, one can use the calculator or excel sheet to arrive at the EMI, however, using the online calculator is an easier option. It also provides accurate results. The EMI calculator on the website will require a few inputs from the aspirant, the inputs are – Loan amount, interest rate and tenure. The tenure and interest rate have to input after gaining adequate information from the bank either through customer care or the website. The interest rate is only indicative and may vary significantly based on the credit score of the applicant.
Benefits of personal loan availed from Axis Bank
The key benefits of personal loan availed from Axis Bank are highlighted below –
- Quick processing of loan – A personal loan is granted within 48 hours (sometimes even on the same day) to salaried individuals aged between 21 to 60 years.
- No collateral required – A personal loan is an unsecured loan. This means it does not require mortgage/pledge of existing assets as collateral. However, before granting and disbursing the personal loan, the bank will run a background check to assess the financial stability and ability to repay of the applicant. With Axis Bank, the minimum net monthly income requirement is Rs 15,000.
- Minimal documentation – Compared to other loans offered by the bank, a personal loan requires minimal documentation. Typically, the documents required are age proof, address proof, photo identification proof, salary slip, Form 16, bank statements, Income-tax returns, and qualification proof/registration proof. These documents need to be submitted along with a duly filled and signed loan application form and one photograph.
- Competitive interest rate – Axis Bank offers a personal loan at an attractive rate of interest. The interest rate depends upon these following factors: income stability, work experience (in the current job/business/profession and total), applicant’s credit score, existing EMIs (if any), repayment capacity of applicant, and loan tenure, among other things.
- Favorable tenure – The tenure for which Axis Bank extends personal loan is 12 months to 60 months. Axis Bank levies no charge for part-prepayments of personal loan.
- High quantum of loan – Axis Bank grants personal loans anywhere between Rs 50,000 to Rs 15 lakhs. Individual can even move existing
Axis Bank Personal Loan Interest Rate FAQs
1. What is the part-payment and pre-closure charges applicable on personal loan extended by Axis Bank?
Axis Bank does not levy any part-payment or pre-closure charges. This is one of the key benefits offered by personal loan from Axis Bank.
2. What are the payment modes available for EMI payment with respect to personal loan from Axis Bank?
The borrower can repay the loan through post-dated cheques, ECS or through a standing instruction to debit existing Axis Bank account with the EMI amount
3. Who can apply for personal loan from Axis Bank?
Personal loan is extended to salaried, self-employed individuals and professionals. The eligibility age for the individual should be between 21 – 60 yrs.
Axis Bank Personal Loan Interest Rate - Customer Reviews
Prasanna
Credit Report Analysis,Usefulness of information,Website/app interface,
Sita ram singh
Axis bank is good.
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