Axis Bank's loans are more expensive than the average personal loan in India, as it charges interest rates of 15.75% - 24.00%, while its competitors charge about 13% to 20%. Additionally, the bank does not offer very large, or very small, loan amounts. For these reasons, it is best to view Axis's loans as backup options to more affordable loans.
|Summary of Axis Bank's Personal Loans|
|Higher than Average Interest Rates: 15.75% - 24.00%|
|Loan amounts of Rs. 50,000 to Rs. 15 lakh|
|Loan tenure of 1 to 5 years|
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What Makes Axis Bank's Personal Loans Stand Out to Borrowers
Axis Bank's personal loans are not the cheapest available in India and are best viewed as a backup to more affordable financing options. This is because the bank's loans are more expensive than the best personal loans available in India due to the its high interest rates of 15.75% - 24.00%. While these rates may not appear to be much higher than those of other banks, Axis's rates result in monthly payments that are thousands of rupees more than the cheapest personal loans in India, making them less affordable for those on a tight monthly budget. Axis's loans also cost significantly more in terms of total interest, which is the best measure of the cost of borrowing.
Estimated Cost of Axis Bank's Personal Loans
|Duration (Years)||Processing Fee||Effective Interest Rate||Monthly Payment||Total Cost|
|1||1.5%||15.75%||Rs. 90,613||Rs. 1,02,351|
|2||1.5%||15.75%||Rs. 48,844||Rs. 1,87,250|
|3||1.5%||15.75%||Rs. 35,031||Rs. 2,76,214|
|4||1.5%||15.75%||Rs. 28,212||Rs. 3,69,196|
|5||1.5%||15.75%||Rs. 24,185||Rs. 4,66,125|
|*Assuming loan of Rs. 10 lakh, total cost includes processing fee|
Furthermore, Axis Bank does offer loan quantums of more than Rs. 15 or less than Rs. 50,000, which may be problematic for borrowers who need very large or small amounts of financing. However, it is worth noting that Axis Bank advertises that it charges its banking customers lower interest rates. For this reason, current customers may want to enquire about preferred interest rates as they compare loan offerings.
Who Can Apply: Eligibility Criteria
Eligible applicants for Axis's personal loans must be salaried employees. For example, qualified loan applicants include salaried doctors, employees of public and private limited companies or government sector employees. For this reason, Axis Bank is not a great option for self-employed and other non-salaried individuals. Finally, applicants are required to earn at least Rs. 15,000 in net monthly income. Finally, the bank has age requirements stating that applicants must be ages 21 to 60.
Other Charges and Fees
Axis charges a wide range of fees. Most importantly, it charges a processing fee of 1.5% to 2%, which is relatively similar to those of its competitors. It also charges a number of other fees, though most are avoidable if borrowers are aware of these charges. With that in mind, we strongly recommend that individuals carefully review the terms of any financial product before applying.
|Processing Fee||1.5% to 2.0% + GST as applicable|
|Early Repayment Fee||N/A|
|Cheque Bounce Fee||Rs. 500 per cheque bounce + GST as applicable|
|Cheque Swap Fee||Rs. 500 per cheque bounce + GST as applicable|
|Default Interest Rate||2% per month on overdue monthly payment|
How to Apply: Application Process
To apply for Axis Bank's personal loan, individuals must submit an application form, in addition to proof of identity, age, income, residence and employment. Following loan approval, borrowers will need to sign a loan agreement and submit a Standing Instruction (SI) Request or Electronic Clearing Service (ECS) Form.
Examples of Required Documents
- PAN Card, Voter ID, Driver's License or Passport
- Latest Salary Slip
- Bank statement
- Utility Bill
- Signature verification proof