About Axis Bank Personal Loan
Axis Bank is considered a pioneer among new generation private sector banks. The operations of this bank began in the year 1993 and have seen consistent growth in the past few years. By using high-end banking technology smartly and by empowering each employee, they have managed to create some of the best solutions such as Personal Loans to ensure that customers get the right financial aid when needed.
A financial emergency never comes with a warning. Sometimes, even the slightest added expense can turn the entire month's budget topsy-turvy making it essential for you to look for added sources of funding.
Axis Bank provides Personal Loans to customers who require immediate funding for any financial emergency. These loans are characterised by quick approval and disbursal, making them the most reliable source to avail urgent funds.
The best thing about Personal Loans is that there is no restriction on what the loan amount is used for. As long as they are not used for speculative purposes these loans are extremely versatile. Whether it is any travel requirement, medical expense, education or even domestic functions such as weddings, these loans can be availed.
A Personal Loan is ideal for any individual who is looking for quick funding. These loans are available to both salaried and non-salaried individuals. As long as the applicant fulfills the necessary eligibility criteria, they can avail a Personal Loan very easily. These loans are extremely beneficial as they do not require any elaborate documentation procedure.
Key Features of the Loan
Axis Bank Personal Loans are loaded with several features that make them one of the most widely used options by customers. Some such beneficial key features are as follows:
- For any personal emergency, the customer can avail between 50,000 and 15 Lakhs. This amount is based on the requirement, income, credit score, and repayment capacity of the borrower.
- Axis Bank offers floating rates of interest which are based on the 1 year MCLR (which is 8.90% as on 04.06.2019). These rates are extremely competitive and vary from 16% to 24% p.a. The interest rate also fluctuates as per the income and the credit score of the applicant.
- Axis Bank offers a flexible repayment tenure that ranges from 12 to 60 months. This allows the customer to choose the tenure and also plan the EMI accordingly.
- You have the option of Instant Personal Loans with Axis Bank. This allows the customer to apply for the loan in just 3 clicks online. This is a 24x7 loan service that makes it extremely convenient to apply for a Personal Loan.
- Customers who wish to close the loan account before the tenure ends have the option of part payments as well as foreclosing the loan. There are no additional charges on pre-closing the loan or making any part payments towards it.
- These loans are available to salaried individuals only
- It is possible to check the eligibility for the loan before applying for it online on the official website.
- Axis Bank also provides a simple Personal Loan EMI Calculator that helps you to know what the exact EMI payable towards the loan is.
- The processing fees on these loans are very low
- Customers do not have to provide any margin for these loans, making it easier to arrange for funds in case of an emergency.
- This loan is unsecured which means that you do not have to provide any collateral against it
Why Axis Bank Personal Loan?
If you are looking for immediate funding, you can choose the Axis Bank Personal Loan. Some of the key benefits of choosing Axis Bank as your lending partner for a Personal Loan are as follows:
- Axis Bank has a pan-India presence in the form of several branches and extension counters. This makes it easier for anyone to apply for a loan from any part of the country.
- The processing time of these loans is very low thanks to the instant Personal Loan option provided by Axis Bank.
- Minimum documentation is required, making the whole application process extremely easy and streamlined.
- Axis Bank offers the most attractive deals that allow customers to get affordable loans at very low equated monthly instalments (EMIs).
- Loan processing is completely transparent and is based entirely on the eligibility criteria
- Axis Bank provides great offers and deals to any customer who has a loan with another bank and provides feasible options for them to transfer the loan and reduce their overall EMI.
- The repayment tenure is extremely flexible allowing customers to also plan their monthly budget better.
Why Calculate EMI Before Applying for a Loan?
The first thing that one should understand about a loan before applying for it is whether it is truly affordable or not. Even though the interest rates offered by banks may seem affordable on paper, it is only when you begin to repay it that you will understand how much it pinches your pocket. Therefore it is always recommended that you calculate your EMI before you actually apply for a loan. Here are some benefits of calculating the EMI before applying for a loan.
- It helps plan the monthly budget accurately: There are several online EMI Calculators that are available for free to help you calculate your EMI accurately. Using these tools can be extremely beneficial as they help you understand the exact outgoing cost for each month towards the EMI alone. This will let you plan your monthly budget in a way that it does not affect your basic needs. Once you have the EMI amount, you can add the other mandatory expenses like rent, children's education, food expenses, and other domestic expenses to see if they fit within your income each month.
- You will know if you are eligible: When you apply for a Personal Loan, it is mandatory that the EMI does not exceed a certain portion of your income. This eligibility criterion is added to ensure that you are left with enough funds to manage your expenses. If you are able to calculate the EMI before applying for the loan, you will be able to tell if you are eligible for the loan or not. This also allows you to choose a loan that you actually have better chances of getting an approval on. That way, you can avoid rejection and your credit score taking a hit.
- It helps understand how much loan you can actually get: If the EMI is too high, the borrower usually has two options. They can either increase the loan repayment tenure or reduce the loan amount to make sure that the EMI fits into their budget. That way, you can be sure of the amount that you will actually be able to get as a loan. This will, in turn help you find other resources to cover any additional costs if the loan amount is not good enough to meet your current financial requirement. You are able to plan your finances a lot better when you know what the exact loan amount will be.
How is an EMI Calculator Useful?
One option that customers have to calculate the exact EMI towards the Personal Loan is to visit the bank and consult the loan provider. However, this can be a time-consuming process. There are tools like EMI Calculator available for free online on MyMoneyMantra, Axis Bank's website and other platforms that make financial planning a lot easier and much more convenient.
The Axis Bank Personal Loan EMI Calculator or any similar tool uses a formula to calculate the EMI. The formula is P*r* (1+r)^n/([(1+r)^n]-1).
In the case of Axis Bank,
P stands for the Principal Amount which can vary between 50,000 and 15 Lakhs with Axis Bank
n stands for the repayment tenure which is between 12 to 60 months at the bank
r stands for the rate of interest offered on the Personal Loan which is between 16% and 24%. This rate of interest is based on the 1 year MCLR which stands at 8.90 for Axis Bank.
Calculating the EMI manually can be time-consuming, especially if you are trying to compare multiple loans to find one that suits you the best. With an EMI Calculator, these formulae are pre-programmed to make it simpler for you to use. You will be able to get the exact EMI instantly.
Using these tools before applying for a loan has several benefits as mentioned below:
- You can calculate EMI accurately: By entering a few simple parameters like the loan amount, the interest rate, and the tenure of the loan, you will be able to calculate the monthly EMI accurately. This will also give you a chance to adjust the loan amount or the tenure to ensure that the EMI towards the loan is affordable. When you are applying for the loan, it makes it easier for you to look for exactly what you need based on your requirement and also your current financial situation.
- These tools are extremely simple to use: An EMI Calculator is very easy to use. As mentioned above, the user only has to provide a few details to calculate the monthly EMI accurately. The user has the option to key in the details required in some calculators. Other calculators make it a lot simpler by providing you with a slider. You can just choose the range of the parameters to get the exact EMI that you will have to pay each month.
- They are available on the go: When you are scouting for the best loan plans, you need to be able to make calculations on the go. If you hear about a good loan plan or even come across one online when you are searching for different loan options, an EMI Calculator is a very handy tool for you. Since it is accessible via your phone or any desktop device, you have access at all times.
- You can check your eligibility instantly: Knowing your EMI will help you understand what portion of your total income will be deducted each month towards it. That helps you calculate the debt to income ratio. This is the ratio of the EMI and the income. It is an important criterion for most banks to provide loans to an applicant. So, you will also be able to assess if you are eligible for a certain loan plan before applying for one. This increases the chances of the application of the Personal Loan being approved by the bank faster.
How to Use the MyMoneyMantra EMI Calculator?
MyMoneyMantra facilitates easy loan application for all its customers. We provide Personal Loan and other financial products of several banks and other financial on a single platform to help customers choose what works best for them. We also aim at making financial planning simpler for customers. For this reason, our website provides an easy-to-use EMI Calculator. It is possible to calculate the EMI on the loan using the following steps:
- Log on to mymoneymantra.com
- Under Financial Tools, choose the EMI Calculator tool
- Enter the loan amount, the interest rate, and the tenure of the loan
- Click on the Calculate button
- The EMI Calculator will provide you with the exact EMI per month, the interest payable, and the total amount (interest plus principal for the entire tenure) payable towards the loan.
Here is an example of the EMI payable towards different loan amounts as calculated by the MyMoneyMantra Personal Loan EMI Calculator. The interest rate considered in these calculations is 16%
|Loan Amount||12 months||36 months||60 months|
Documents Required for Axis Bank Personal Loan
In order to ensure that the loan application process is faster, it is essential for you to keep all the necessary documents in place. Although documentation is very simple with Axis Bank Personal Loans, it is advised that customers refer to a checklist before actually applying for the loan. This prevents any delays due to wrong or missing documents. The documents that need to be provided for Axis Bank Personal Loans are as follows:
At the time of application:
- A duly filled Personal Loan application form
- Recent passport-sized photograph
- Address proof
- Age proof
- Identity proof
- Income proof
- Bank statement
- Signature proof
After the sanction and before the disbursal of the loan:
- A duly signed loan agreement
- Standing Instruction Request Form/ ECS Form (Security Cheques for SI and ECS)
- In the case of architects, doctors, CS, CA, MBA, ICWA, Engineers, consultants, and other professionals, providing a registration or qualification proof is mandatory.
Eligibility Criteria for Axis Bank Personal Loan
In order to be eligible for an Axis Bank Personal Loan, the applicant must fulfill certain eligibility criteria. It is always advised that you check these eligibility criteria thoroughly before applying for a loan. Although these conditions are quite straight forward and simple, it is always a good idea to check. In case any of these conditions are not matched by the applicant, the loan will be rejected and will affect the credit score negatively. This may affect your chances of getting any financial assistance in the future.
In order to be eligible for a Personal Loan with Axis Bank, the applicant must fulfill the following conditions:
- These loans are available for salaried employees, including salaried doctors, employees of any public and private sector companies, public and private limited companies, and government sector employees including PSUs, central and local bodies.
- The minimum age of the individual who wants to apply for a Personal Loan should be 21 years
- The maximum age of the individual at the time of maturity of the loan should not exceed 60 years.
- The net monthly income of the individual should be a minimum of 15,000. Net monthly income is calculated by making all the deductions on the gross income including the possible EMI for the loan.
What are the Factors that Affect EMI?
There are three main factors that determine the EMI that you will pay towards your Personal Loan from Axis Bank:
- The interest rate: The lower the interest rate, the lower is the EMI. The interest rate provided to the applicant in turn depends on several factors such as the income, the CIBIL score, and the nature of employment. One of the most effective ways to reduce the rate of interest is to improve the CIBIL score. This can be done by ensuring faster repayments on the loan, reducing debt utilization, and consolidating all the existing loans.
- The repayment tenure: With Personal Loans, applicants have the option of flexible repayment tenures. It is possible to choose a tenure that is suitable to you based on the EMI that is affordable each month. The longer the repayment tenure, the lesser the EMI. However, if the option of reducing the tenure is available it is recommended that you opt for it. This will reduce the amount that you will pay towards the interest that is charged on the loan.
- The loan amount: The EMI is calculated on the principal amount which is the amount that is sanctioned to you. The higher the loan amount, the higher the EMI payable towards the loan. Even if the loan amount that you require is on the higher side, it is possible to reduce the EMI by working around the interest rate and the repayment tenure. These are the more flexible factors when it comes to EMI.
How to Choose the Best EMI?
The EMI that you pay towards your loan is an added liability each month. So, it is very important for you to compare different loan plans and offers before finalizing upon one. There are some ways to choose the best EMI option for you:
- Use an EMI Calculator: This is a very easy tool to understand exactly how much each financial institution will charge you as EMI towards the loan. It makes it very easy to compare the options available so that you can choose the lowest EMI and the most affordable option for yourself before applying for a loan.
- Consider your monthly budget: Carefully calculate your monthly budget and ensure that you are able to manage all the necessary expenses even after the EMI is deducted. The major expenses such as your living expenses, education, rent, and so on should be prioritised to understand how much EMI you can actually afford to pay to the bank each month.
- Plan into the future: A Personal Loan can be repaid within 1 to 5 years. If you are planning to choose a longer repayment period, ensure that you calculate the possible expenses in the future. This will help you understand if the EMI will be affordable for you when you choose to make other investments in the future.
- Choose the lowest repayment period: It is not necessary for you to utilise the longest repayment tenure. Choose an EMI that is affordable but still allows you to repay the loan in the shortest possible time. This helps you in two ways. First, the loan will be closed faster and your CIBIL score will increase. Second, you will be able to save a lot of money that you would otherwise have to pay towards the interest that is charged on the loan.
Changes in Personal Loan EMI in Case of Prepayment
With Axis Bank, you have the option of making part prepayments on the loan or even pre-closing the loan. Part payment means that you will pay a larger portion of the principal amount before the tenure ends but not the whole amount. In the case of pre-closure, it means that you will be paying the entire principal amount before the tenure of the loan is completed. This will help you reduce debts faster and increase the CIBIL score. In addition to that, it will also affect the EMI that you will be paying towards the loan. Of course, in the case of pre-closure, you will not be paying any more EMIs.
If you make part payments, the principal amount reduces. This brings down the EMI as well. The borrower has two options in this case. They can retain the tenure of the loan and pay a lower EMI each month. The other option is to retain the current EMI that is being paid towards the loan and reduce the repayment period. The latter is considered the better choice as the loan will be closed faster and you will also have significant savings in terms of the amount paid towards the interest.
How to apply for Axis Bank Personal Loan?
There are different channels available to submit your loan application. You can apply for a loan online by logging on the Axis Bank website. You also have the option of visiting the closest Axis Bank Loan Center. Customers can even contact customer service numbers to apply for a loan. For quick application and instant disbursal, you can also apply online through MyMoneyMantra.
How long will it take for the loan to be approved?
Typically, Axis Bank takes 30 working days to process and disburse the loan after the application is received. All the documents are verified to check the eligibility criteria before sanctioning the loan.
What is the rate of interest on Axis Bank Personal Loans?
Axis Bank rate of interest on Personal Loans is based on 1 year MCLR, which is 8.70% as on 04.06.2019. The current rates being offered are between 16% and 24% p.a. The interest rate depends on the credit score, income, and other eligibility criteria.
What is the repayment tenure available?
Axis Bank offers flexible repayment tenures for Personal Loans. Customers can choose between 12 and 60 months to make the repayment towards the loan. The lower the repayment tenure, the higher is the EMI.
How can I make repayments towards the loan?
There are multiple options available to make repayments towards the Personal Loan. You can provide Standing Instructions to debit the amount from your account. In addition to this customers can opt for Electronic Clearing Services or Post Dated Cheques to make EMI repayments.
How to calculate the EMI towards the Loan?
The EMI that you have to pay towards the loan can be calculated using the online Personal Loan EMI calculator available on the Axis Bank website as well as on MyMoneyMantrs. This helps you calculate the EMI accurately by entering the loan amount, the interest rate and the repayment tenure of the loan.
Do I have to provide any collateral towards the loan?
Axis Bank Personal Loans are unsecured loans. This means that customers do not have to provide any collateral towards the loan. The loan is provided as per the income of the individual and the CIBIL score. This helps the bank understand the repayment capacity and the creditworthiness of the applicant.
What is the loan amount available with Axis Bank Personal Loans?
With Axis Bank the minimum loan amount available is 50,000 and the maximum amount available is 15 Lakhs. This amount is based on the repayment capacity of the individual which is calculated based on the income and the CIBIL score.
Can I make prepayments on Axis Bank Personal Loan?
Axis bank allows you to make part payments on the loan or even foreclose the loan before the tenure ends. There is no fee charged towards these prepayments made on the loan.