About Axis Bank Personal Loan
Axis Bank, formerly known as UTI Bank, ranks third among the private sector banks. It has a wide reach across the country with over 4000 domestic branches on date. It is a new generation branch offering an assortment of products covering the retail and corporate sectors, the agricultural sector and the MSME sector.
Personal Loans are a boon when it comes to sorting out a financial situation. If you have handled your earlier commitments responsibly and have paid the instalments on time, it is a like a cakewalk to obtain a Personal Loan. Most private banks provide pre-approved Personal Loans to their existing customers with a good track record. You can access this facility through the net banking facility and place a request. The proceeds of the loan will land in your bank account in minutes.
Axis Bank has an array of products in both the retail and the corporate sectors. The most popular being the Personal Loan that can be applied for online. The bank promises to process the loan and give a quick approval, on receiving the application, that is complete in all respects and the documents as required.
Axis Bank has special Personal Loans designed for specific purposes like wedding loan, holiday loan, home renovation loan, etc. The fees and charges are nominal and the rate of interest is competitive. To top it all, you will not have the stress of heavy EMI as the bank provides a flexible repayment option up to 60 months.
Eligibility Criteria for Axis Bank Personal Loan
To qualify for Axis Bank Personal Loan, you will have to comply with the eligible criteria set out by the bank. Details of the criteria are as given below:
- You can apply for the loan if you are employed with Government Departments, Public and Private Limited Companies, Central and Local bodies or PSUs.
- You are eligible for the loan if you are a salaried doctor
- Even as a self-employed individual/professional or businessman you can apply for the loan
- You should have a minimum work experience of 2 years in current employment
- If you are self-employed, a business vintage of 5 years is mandatory
- The minimum monthly income required is 15,000
- The minimum age at the time of submitting the application should be 21 years and the age at the time of maturity of the loan should not be more than 60 years.
- You should have a minimum credit score of 750 and above
- The area you are located in, i.e., rural, semi-urban, urban, metro area, the type of residence you are in, i.e., rented or owned and the numbers of dependants are also some of the factors that determine your eligibility.
Features of Axis Bank Personal Loan
Axis Bank offers specific loans for wedding, holiday and home renovation. But the normal Personal Loan can be utilised for any genuine personal credit requirements. The features of Axis Bank Personal Loan in a nut-shell are as given below:
|Name of the Product||Purpose||Quantum||Interest||Security||Repayment|
Axis Bank Personal Loan
The Personal Loan is an unsecured loan and so no security is required.
The loan can be repaid within 12 months to 60 months as per your convenience.
Benefits of Axis Bank Personal Loan
There are various benefits associated with Axis Bank Personal Loan that makes it distinct:
- The whole laborious process of applying for the loan has been made simple by providing the facility to apply for the loan online and uploading the soft copies of the required documents.
- With the required details for loan processing available in real-time reduces the turnaround time for the loan approval.
- Flexible repayment option provided up to 60 months which makes the EMI affordable
- The rate of interest is competitive and as per market standards
- You can transfer an existing loan at a higher rate to Axis Bank for a lower interest rate
- You have the advantage of earning loyalty Edge reward points that can be redeemed for online shopping, payment of bills, more than 500 gifts from the gift catalogue of the bank, etc.
- The bank strives hard to give the best service to the utmost satisfaction of the customer
- The loan process is hassle-free
- The processing charges for the loan are nominal
- The loan can be prepaid without any penal charges
- No elaborate documentation and it is quick and easy
- No hidden charges
Documents Required for Axis Bank Personal Loan
In order to create healthy assets, it is essential to ascertain the creditworthiness, the identity and the whereabouts of the borrower. To establish these facts, certain documents are required and are made mandatory by financial institutions if you have to qualify for the loan. The documents required for Axis Bank Personal Loan are:
Aadhar Card, Voter's ID Card, Passport, PAN Card, Utility Bills, Driving Licence
Proof of signature
Prescribed application for the loan, duly filled and signed
2 passport size photographs of the applicant
Factors Affecting Axis Bank Personal Loan Eligibility
There are several factors that affect the eligibility for Axis Bank Personal Loan:
- The repayment history or the credit score: The main concern for the lender to determine your loan eligibility is the credit score. A credit score of over 750 is considered good for unsecured loans like Personal Loans. But what is the basis on which the credit score is drawn? A credit score majorly depends on the manner in which you handle your debt obligations. When you avail a loan and make payments towards the loan, the lender will report the same to the credit bureau. Similarly, when you default a loan, the report will reach the credit bureau. Based on the reports obtained from the lending institutions, regarding the number of loans availed, type of loan availed, repayments, etc., a credit history will be maintained for every individual. The score will be based on credit history. The loans that you have availed have a blend of secured and unsecured loans and if the loans are serviced promptly, then the score will be good. Any default in the loan will bring down the score. Also, the extent of credit utilisation if you have credit cards also plays a very important role in deciding the credit score.
So if you want to be in the list of eligible candidates for a Personal Loan, you will have to maintain a good credit score.
- Income: A good and stable income is what facilitates the regular repayment of the loan. Even the quantum of the loan is proportionate to your income. To a large extent, the negotiation of the rate of interest will also depend on your income. If you have a high income, you are a more reliable borrower.
A high salaried individual is considered creditworthy and will be considered as a safer option for lending by the financial institutions. The risk attached to the loans granted to individuals with a high salary is minimal and will be preferred by the lenders.
- The status of your employer: A career with a reputed organisation is considered stable and so the income will also be stable. Stable income ensures steady and regular repayment of the loan. The reputation of your employer plays a very important role in determining your eligibility for the loan.
- Debt to income ratio: The income and the status of your employer are definitely the prime factors to consider the eligibility for a Personal Loan. But if you already have availed big-ticket loans like the housing loan, vehicle loan, etc. that would be a major part of your monthly budget, then you will not be able to meet the debt to income ratio. The debt to income ratio should not exceed 40%, i.e., the deductions of your current debt obligations after providing for the proposed Personal Loan EMI should not exceed 40% of your monthly income. This is to ensure that you have sufficient income available to take care of any emergencies during the repayment period of the loan and you do not default on the EMI.
- Number of dependants: The obligation towards your monthly income will increase with the number of dependants. The residual income to service the proposed EMI will reduce and so will your loan eligibility.
- Relationship with the bank: If you have a long-standing and satisfactory relationship with the bank, it goes a long way in determining your loan eligibility. The reason being your credibility is already established with your past performance. You can even negotiate on certain terms like the loan amount, rate of interest and charges associated with the loan if you have a good and long-standing relationship.
The bank even provides instant Personal Loans for existing customers that can be easily availed without going through a long procedure. The approved loan limit will be on a case to case basis and you can view the loan sanctioned to you through the net banking facility. Once you are aware of the loan that is available, you can place a request through net banking and the amount will land in your account within minutes.
- Age: Age definitely is an important factor in deciding your loan eligibility. If you are young and in the prime of your career, you will obviously be having a longer period of stable income with a scope of hike in the income as you go up the ladder. You will be able to opt for a longer tenure and can obtain a higher loan amount for a lower EMI. If you are close to your retirement when you apply for a loan, then the repayment tenure will be shorter and the EMI will be proportionately high and you may not be able to source it from your income. Since the period of stable income will reduce as you approach the retirement age, you will not be considered as an eligible candidate for the loan.
Tips to Improve Axis Bank Personal Loan Eligibility
You will have to keep a track of the following if you have to improve your eligibility for Axis Bank Personal Loan:
- Credit score: Before applying for a Personal Loan, check on the credit score. A credit score of 750 and above is considered good for a Personal Loan. To maintain the credit score at this level, you will have to pay your loan EMIs and credit card bills on time. If the credit score is below the required level, wait until you improve the same and then apply for the loan. Not paying the debts only might not be the reason for a low score. Sometimes, there could be some inaccuracies in the credit history due to which the score would have soared down. Check for such inaccuracies and get it corrected before applying for a Personal Loan. On the other hand, if the score has come down due to over dues in loan accounts and credit card bills, you manage to clear the existing over dues before applying for the loan.
- Credit card limit usage: If you have to keep your credit score at a good level, it is ideal to limit the credit card usage to 30%. Maximum usage of the credit card limit implies that you are depending on the credit for your expenses, which is not a good sign. Aim at paying the credit card bill in full instead of restoring to payment of the minimum amount. The cost of the credit will mount up due to the heavy interest charged on the balance amount carried forward and you may end up in a huge debt trap with a depleted credit score.
- Secured and unsecured loans: Have a good combination of secured and unsecured loans. Availing only unsecured loans implies that you are an impulsive borrower and you depend mostly on the loans for your sustenance. The credit score will come down if you have higher number of unsecured loans.
- Debt to income ratio: Before applying for the Personal Loan, consolidate all your existing obligations and calculate the debt to income ratio. Try to clear some of the existing short-term loans and credit card dues to improve your debt to income ratio. With lower deductions from your monthly income towards your existing obligations, you will have a higher amount to service the EMI towards the proposed loan that will increase your eligibility and you will be able to procure a higher loan amount.
- Tenure: If you need a higher loan amount with a lower EMI in order to comply with the debt to income ratio aspect, you will have to choose a longer tenure. Initially, while applying for the loan, you opt for a longer tenure to avail the loan at a lower EMI. Axis Bank permits part prepayment with nominal charges and so you can subsequently make part prepayments when funds are available to reduce the cost of the loan.
- Do not make multiple applications simultaneously: Applying for a loan simultaneously with different financial institutions makes you seem like a desperate borrower. Every lender will check the credit score before processing the loan application. Each inquiry will be recorded in your credit history that will bring down your credit score. This will make it difficult to actually qualify for any loan in future.
- Exercise due diligence while choosing your lender: Choose the lender with great care. Do thorough research for interest rates and other fees before applying for a loan. The rate of interest is one of the components that decide the EMI for the loan. If the interest is higher the EMI will be higher, which in turn will impact the eligible loan amount. Also, the associated charges will affect the overall cost of the loan. For instance, if you are intending to clear off the loan earlier by making part-payments, you should look for a lender who is charging competitive pre-payment charges since the penalty will eventually affect the cost of the loan.
Axis Bank Personal Loan Eligibility - FAQs
How does the bank ascertain my eligibility for Personal Loan?
You can check your eligibility for Axis Bank Personal Loan with the help of the EMI Calculator. Decide on the loan amount, loan tenure, and the rate of interest and incorporate them in the EMI Calculator to arrive at the EMI that suits your monthly budget.
What is the diligence you have to exercise before applying for a Personal Loan?
A Personal Loan is a long-term loan and you will have to necessarily work out the cost of the loan before applying for one. You should do a comparative study of all the offers available in the market. Work out the cost of the loan with the different rates and tenures offered by the various lenders in the market using the EMI Calculator and choose the deal that is the most cost-effective with an EMI that does not hurt your monthly budget.
Who can apply for Axis Bank Personal Loan?
- Individuals with confirmed employment with Government Departments, Public and Private Limited Companies, Central and Local bodies or PSUs and salaried doctors, self-employed individuals/professionals and businessmen can apply for the loan.
- Salaried individuals should have a minimum work experience of 2 years with the current employer.
- The self-employed should have a business vintage of 5 years
- The applicant should have a minimum monthly income of 15,000 and should be in the age group of 21 years to 60 years.
- A minimum credit score of 750 is mandatory
What are the reasons for low credit scores?
The following are the main reasons for low credit score:
- Multiple applications for loans simultaneously with different lenders
- Not having a good combination of secured and unsecured loans
- Defaulting payment of existing loans and credit card bills
- Usage of credit card limit to the maximum level
What are the ways to improve the credit score?
You can improve the credit score:
- By closing the existing short term loans
- By regularising the over dues in the existing loans and credit card bills
- Availing loans in such a way that there is a good blend of secured and unsecured loan
What are the best ways to create a credit score?
Not having a credit score is also not favourable since the lender will not be able to gauge your responsibility towards commitments. The best way to create a credit score is to avail short-term Personal Loans and make prompt payments. You can also obtain a credit card and create a good score by using the card judiciously and making prompt payment of the entire outstanding for a billing period within the due date.
How to apply for Axis Bank Personal Loan?
You can apply for Axis Bank Personal online through the official website of the bank or by approaching the nearest branch of Axis Bank or by calling the Customer Care Centre and placing a request. If you place a request through the Customer Care Centre, the representative of the bank will get in touch with you to provide the details regarding the loan. Alternatively, you can also apply through MyMoneyMantra.com.
What is the time taken by Axis Bank to convey the decision regarding the loan application?
Axis Bank will convey the decision regarding the loan application within 30 days from the date of receiving the application provided the application is complete in all respects and all the required documents submitted. The date on which all the required documents are submitted will be considered to compute the 30 days.
What are the ways to place a request for a repayment schedule or the interest certificate for the Personal Loan?
A request can be placed either through email to www.axisbank.com/support or by calling the customer care centre or by visiting the nearest branch.
What are the options provided for making the EMI payments?
- The EMI payments can be made by setting standing instructions if you have a savings or current account with Axis Bank.
- For auto-debit from other bank accounts, you will have to sign a mandate on the other bank account for debit on a particular date.
- The payment can be made by submitting Post Dated Cheques. But the cheques have to be replenished from time to time. This facility is available only in locations where there is no ECS facility.
What are the benefits of Axis Bank Personal Loan?
The following are the benefits of Axis Bank Personal Loan:
- Online application for a Personal Loan has been enabled which reduces the turnaround time
- Competitive rate of interest to match the market standards
- Flexible repayment option that enables affordable EMI
- Balance transfer of existing loans with a higher rate of interest is provided
- You can earn loyalty Edge reward points that can be redeemed for attractive gifts or for paying utility bills, for online shopping, etc.
- Hassle-free loan processing
- Customer service is good
- Simple and easy documentation
- No hidden charges
- Nominal processing charge
- No pre-payment charges
- No hidden charges