Axis Bank offers personal loans from Rs. 50,000 to Rs. 15 lakh with minimal documentation and quick approval. With Axis Bank Personal Loan, you can fulfill your various personal needs as there is no restriction on the end- use. Along with this, you can repay the loan within a flexible tenure ranging from 12 to 60 months. You can choose the tenure on your own as per your repayment ability.
Table of Contents:
- Interest Rates
- Reducing Balance Interest vs Flat Interest Rate Calculation
- EMI Calculation Using Reducing Interest Rate
- EMI Calculation Using Flat Interest Rate
- Interest Rate Calculation
- Axis Bank Personal Loan Interest Rate Comparison
- How to Get Low Interest Rates on Axis Bank Personal Loan?
- Factors Affecting Interest Rates
- FAQs
Axis Bank Personal Loan Interest Rate
Axis Bank personal loans are based on the 1 year marginal cost of lending rate (1-year MCLR) which is an internal benchmark of Axis Bank. When determining the interest rate on a personal loan, Axis Bank adds a spread ranging from 3.75% to 15.75% on top of the 1-year MCLR. This spread is decided by the bank on a case by case basis. The following is the interest rate range applicable to personal loans offered by Axis Bank:
| Axis Bank Personal Loan Interest Rate | 1-year MCLR | Spread on 1-year MCLR | Effective Rate of Interest |
| 8.25% | 3.75-15.75% | 12-24% |
Axis Bank Reducing Balance Interest vs Flat Interest Rate Calculation
In case of reducing balance method of interest calculation, the interest is calculated every month on the outstanding loan principal amount only. In this method, the interest accrued gets reduced every month as EMIs include interest payable for the outstanding loan amount for the month along with a portion of the principal amount outstanding being paid off. After you pay an EMI, the outstanding loan principal is reduced. Therefore, the interest accrued for the next month is reduced which leads to reduction in overall interest payments. The formula to calculate reducing interest rate is:
- Interest Payable per Instalment = Interest Rate per Instalment * Remaining Loan Principal Amount
When it comes to flat interest rate method, the interest rate is calculated on the full amount of the loan until the tenure ends without considering the fact that monthly EMIs gradually reduce the principal amount. The formula for calculating the loan interest using the flat balance method is:
- Interest Payable per Instalment = (Original Loan Amount x No. of Years x Interest Rate p.a.) / Number of Instalments
Axis Bank uses reducing rate in order to calculate the interest payable on personal loans. Therefore, the interest accrued decreases with each successive EMI payment.
EMI Calculation Using Reducing Interest Rate
The table indicates loan amount to be paid every month against different tenures and monthly EMIs that are calculated using the reducing interest rate method.
| Loan Amount (Rs.) and Interest Rate | Monthly EMI Payout (Rs.) | ||
| 1-year loan tenure | 2-year loan tenure | 3-year loan tenure | |
| 1 lakh @ 12% p.a. | Rs. 8,885 | Rs. 4,707 | Rs.3,321 |
| 6 lakh @ 14% p.a. | Rs. 53,872 | Rs. 28,808 | Rs. 20,507 |
EMI Calculation Using Flat Interest Rate
The table depicts loan amount to be paid every month against different tenures and monthly EMIs that are calculated using reducing interest rate method.
| Loan Amount (Rs.) and Interest Rate | Monthly EMI Payout (Rs.) | ||
| 1-year loan tenure | 2-year loan tenure | 3-year loan tenure | |
| 1 lakh @ 12% p.a. | Rs. 8,333 | Rs. 4,167 | Rs. 2,778 |
| 6 lakh @ 14% p.a. | Rs. 50,000 | Rs. 25,000 | Rs. 16,667 |
Axis Bank Personal Loan Interest Rate Calculation
The following is a sample calculation of EMI payouts on your Axis personal loan across different tenure for various loan amounts, interest rates and tenures:
| Loan Amount (Rs.) and Interest Rate | Monthly EMI Payout (Rs.) | ||||
| 1-year | 2-year | 3-year | 4-year | 5-year | |
| 2 lakh @ 12% p.a. | 17,769 | 9,414 | 6,642 | 5,266 | 4,448 |
| 5 lakh @ 14% p.a. | 44,893 | 24,006 | 17,088 | 13,663 | 11,634 |
| 4 lakh @ 15% p.a. | 36,103 | 19,394 | 13,866 | 11,132 | 9,515 |
Axis Bank Personal Loan Interest Rate Comparison
The following table compares the key features of personal loans offered by leading banks in India
| Criteria
| Axis Bank | HDFC Bank | Citibank | ICICI Bank | State Bank of India |
| Interest Rate | 12-24% | 10.75-21.30% | 10.50% onwards | 11.25-22.00% | 10.50% onwards |
| Tenure
| 12 to 60 months | 12 to 60 months | 12 to 60 months | 12 to 60 months | 12 to 72 months |
| Loan amount | Rs. 50,000 to Rs. 15 lakh | Upto Rs. 40 lakh | Upto Rs. 30 lakh | Upto Rs. 20 lakh | Upto Rs. 20 lakh |
| Processing Fee | Upto 2% of the loan amount plus GST | Upto 2.50% of the loan amount | Upto 3% of the loan amount | Upto 2.25% of loan amount plus GST | Up to 1%% of the loan amount plus applicable GST |
How to Get Low Interest Rates on Axis Bank Personal Loan?
The following are some tips and tricks to get the lowest interest rates on your personal loan from Axis Bank:
- Maintain a high credit score
- Ensure stable employment history
- Pay your EMIs and credit card dues in a timely manner
- Know personal loan offers from your existing banking
- Minimize outstanding debt at the time of loan application
Factors Affecting Interest Rates
The following are some of the key factors that affect the interest rate applicable to personal loans offered by Axis Bank:
- Credit score: It is one of the most important factors considered by a prospective lender before deciding the interest rate of an individual. Therefore, if you have a good credit score, it will automatically indicate that you have been regular with your past repayments and you may be able to get a lower interest rate on your Axis Bank personal loan.
- Income Level: Higher the income, lower would be the interest rate offered by the bank because high income indicates that you will be able to manage your monthly EMIs and other expenses easily with lower risk of default on your repayments
- Relationship with the bank: If you have a current or savings account in good standing with the bank, you might be offered a lower interest rate on your Axis personal loan
- Employer’s reputation: If you are working with a reputed organization and have a stable job, the lender might offer you a lower interest rate on a personal loan
FAQs
Q1. Are there any fees and charges other than interest charges for an Axis Bank Personal Loan?
Yes, a few charges other than interest charges may be applicable to your personal loan. Some of the key ones to consider are as follows:
| Repayment instruction / Instrument return charges | Rs.500 per instance of dishonour of cheque /SI/ECS/NACH debit instruction + GST as applicable. |
| Swap charges (Cheque/Instrument) | Rs.500 per instance + GST as applicable. |
| Penal Interest | @ 24% per annum i.e. 2% per month on the overdue instalment |
| Duplicate statement issuance charges | Rs.250 per instance per set + GST as applicable. |
| Duplicate Amortization schedule issuance charges | Rs.250 per instance per set + GST as applicable. |
| Re-Issuance of photocopy of loan agreement/documents | Rs.250 per instance per set + GST as applicable. |
| Credit Information Companies (CICs) Report Issuance Charges | Rs. 50 per instance per set + GST as applicable. |
| Duplicate NOC | Rs. 500 per instance per set + GST as applicable. |
| Stamp Duty Charges | As per State Stamp Act |
Q2. Can I get personal loan from Axis Bank if my salary is Rs. 15,000?
Yes, to get a personal loan from Axis Bank your salary should be at least Rs. 15,000.
Q3. Can I top up my existing personal loan on Axis Bank?
No, you cannot top up your existing personal loan on Axis Bank. Currently the bank offers top up loans only in case you have an existing home loan with the bank.
Q4. How do I preclose a personal loan from Axis Bank?
You have to submit a foreclosure request at the loan centre to pre-close the personal loan. Currently, there is no pre- closure charge applicable on an Axis Bank Personal Loan.
Q5. Do I have to pay a fee to apply for Axis Bank Personal Loan?
Yes, the bank charges a non- refundable processing fee that ranges between 1.5% to 2% of the loan amount plus applicable GST. This amount is not refunded even if your loan application is rejected.
Q6. How do I get in touch with Axis Bank Customer Care?
- You can call Axis Bank at 1 – 860 – 419 – 5555 or 1 – 860 – 500- 5555 (standard calling charges are applicable for both numbers)
- NRIs can contact the bank through the following numbers:
| USA | 1855 205 5577 |
| Saudi Arabia | 800 850 0000 |
| UK | 0808 178 5040 |
| UAE | 8000 3570 3218 |
| Singapore | 800 1206 355 |
| Qatar | 00 800 100 348 |
| Canada | 1855 436 0726 |
| Bahrain | 800 11 300 |
| Australia | 1800 153 861 |
| (Non – Toll Free) | +91 40 67174100 |
- You can also visit the nearest branch of Axis Bank
- You can send an email to the bank at loans@axisbank.com by using your registered email ID