Axis Bank Personal Loan Interest Rate

Axis Bank Personal Loan offers one of the lowest interest rates amongst the other private lenders in the personal loans segment. Axis Bank personal loan interest rates for 2016 vary from 15.50% to 24%. Axis Bank personal loan interest rate is offered at a floating rate, which means that the rate can increase or decrease with market fluctuations.

Floating rate of interest on Axis Bank Personal Loan is subject to change from time to time according to the changes in market conditions, RBI directives and the bank’s discretion.

Types of Personal Loan Interest Rates

Interest rates for personal loans can be either fixed or floating in type. These interest rate types divide the personal loan into:

• Fixed rate personal loan

In this type of personal loan, fixed rate of interest is applicable. Fixed rate of interest means that the interest rate stays the same throughout the tenure of the loan and it is not affected by the market fluctuations. The EMIs or Equated Monthly Installments of such loans are equal for the entire tenure and the borrower will have to pay an equal sum of money every month.

• Floating rate personal loan

In this type of personal loan, floating rate of interest is applicable. Floating interest implies that the applicable interest changes with time and does not stay the same. The EMIs of such loans also keep changing according to the interest rate.

Interest rates offered by Axis Bank on personal loans are of the floating type and is subject to change from time to time as per the market fluctuations.

Personal loan interest rates of a bank vary even in case of two people opting for personal loan from the same bank at the same time. That essentially means that the rate of interest for a personal loan would be different in case of different individuals. Interest rates offered by the bank also varies from time to time according to the market fluctuations.

Axis Bank Personal Loan Interest Rates are affected by the following factors:

• Credit Score: Axis Bank Personal Loan Interest Rates is influenced by the CIBIL Score or the credit score of the loan applicant. Credit score is a measure of the creditworthiness of a person with respect to his past financial record. You will need to have a good credit score in order to gain a cheaper rate of interest on your personal loan. Credit score is decided by your previous loan payments and also your credit card payments. In case you default on any of the payments then your credit score might suffer and consequently you will end up paying a higher rate of interest for your loan.
• Employment: Employment type is also a major factor for determining the personal loan interest rates. Interest rate on Axis Bank Personal Loan can vary according to the company you are working with. If you are a salaried professional working with the reputed company you might be offered loan at a cheaper interest rate by the bank. But, if you are working with a company that is not doing very well, you might be asked to pay a higher interest rate.
• Income: You might be offered a personal loan at a reduced rate of interest if you have a good income. Personal loan being an unsecured loan, is sanctioned as per the repayment capability of the borrower. Therefore, a person with a higher income is more capable to pay back the lent amount as compared to a person from a lower income group. Therefore, higher your income, the lower will be the rate of interest charged on the personal loan given to you. According to the Bank lending trends, if you have an income of up to Rs 50,000 per month, the bank is likely to charge an annual interest between 16% and 20%. However, if your income lies in between Rs 50,000 to Rs 1lakh, you can enjoy an even lower rate of interest on personal loans, anywhere between 14%–16%.
• Loan Amount: The personal Loan Interest Rates may change with the loan amount you borrow.
• Relationship between bank and customer: If you an existing customer of the Bank having a savings account or a fixed deposit account, then you become loyal or valued customer of the Bank. If you are a valued customer of the bank, then the bank might allow you a better interest rate. Personal loan interest rate for a person holding a salary account with the bank might be cheaper as compared to others. Axis Bank personal loan might be offered to you at a reduced rate of interest provided you are a valued customer of the Bank and holding good amount of investment in the Bank.

EMI or Equated Monthly Installment is the amount you pay each month in order to repay the loan that you have borrowed. When you take a loan, the lender charges interest on the amount loaned at a specific rate of interest. Along with the EMI, you also need to calculate the interest on Axis Bank personal loan as you need to know the following:

• Personal loan amount- It is the amount that you borrow as a personal loan. Interest is applied on this amount and is directly proportional to the loan amount. Higher the loan amount, higher will be the interest payout and higher will be the EMI that you pay each month.

In case of Axis Bank Personal Loan, you can avail a personal loan starting from Rs. 1 lakh up to Rs. 15 lakhs. There are certain factors which the Bank considers when deciding the personal loan eligibility amount are:

• Applicant’s requirement and eligibility
• The income level
• The repayment capacity

 

• Annual interest rate- The loan interest is payable at a certain rate and this rate is given by the lender as an annual rate. Higher the rate of interest more will be the EMI that you will have to pay. Axis Bank Personal Loan Interest Rates vary from 15.50% to 24% per annum.

Axis Bank Personal Loan also includes a non-refundable processing fee. The processing charges to avail Axis Bank Personal Loan ranges from 1.5% to 2% of the loan amount including service tax as applicable.

• Loan tenure- The tenure for which you pay EMIs in order to repay the loan amount is the loan tenure. Longer the loan tenure, higher will be the rate of interest that you will have to pay, but the EMIs that you pay each month will decrease and you will have a longer tenure to repay the amount borrowed.

Axis Bank Personal Loans are offered with a flexible tenure ranging from 12 to 60 months.