Axis Bank Personal Loan Interest Rates

Axis Bank Personal Loan Interest Rate

Axis Bank Personal Loan interest rates start from 11.25% p.a. Although Axis Bank has not specified offering differential personal Loan interest rates based on factors like credit score, monthly income, existing EMIs from any debt obligation(s), occupation profile, employer’s profile, work experience, etc. of its loan applicants for various personal loan schemes, most lenders consider these parameters while setting their personal loan interest rates.

Factors affecting Axis Bank Personal Loan Interest Rates

Credit Scores

The bank has not disclosed the role of credit scores in determining the Axis Bank Personal Loan interest rates. However, several lenders consider the credit scores of personal loan applicants when fixing their interest rates. As loan applicants don’t have to pledge any collateral for personal loans, it increases the credit risk for a lender. Thus, the lenders become more dependent on their personal loan applicants’ credit scores to assess their creditworthiness. Lenders generally consider personal loan applicants with credit scores of 750 and above as more creditworthy and hence, such applicants are usually offered personal loans at lower interest rates.

Axis Bank Personal Loan applicants looking to maintain/improve their credit scores can follow healthy credit practices including settling their credit card bills and repaying EMIs on time, avoiding multiple credit card or loan applications within short durations, maintaining a healthy credit mix, etc and thereby, improving their personal loan eligibility. They should also review their credit reports at regular intervals to detect any errors and highlight the same to their lender or credit bureaus. Any error in the credit report can lower the credit scores and negatively impact the personal loan eligibility of a loan applicant. Lower credit scores may also reduce their chances of availing lower Axis Bank Personal Loan interest rates.

Income

Axis Bank Personal Loans are provided to loan applicants with a minimum net monthly income of Rs. 15,000. While the bank has not specified providing differential Axis Bank Personal Loan interest rates based on their applicants’ income, many lenders follow the practice of offering personal loans at preferential interest rates to loan applicants with higher monthly incomes. For such lenders, personal loan applicants with higher incomes present a lower credit risk due to their higher loan repayment capacity. Lenders can pass on this benefit to prospective borrowers by offering them personal loans at lower interest rates.

Occupation Profile

Although the bank has not specified the role of loan applicants’ employer profile while deciding the Axis Bank Personal Loan interest rates, many lenders consider the employer profile while setting the personal loan interest rates of prospective loan applicants. Note that lenders usually set lower interest rates on personal loans for salaried when compared to personal loans for self-employed. Within salaried applicants, those working for government or PSUs are offered preferential interest rates because their job and income security is usually higher than other salaried individuals. Among private sector employees, lenders offer lower interest rates to personal loan applicants working in MNCs or reputed private sector organisations due to the higher capacity of such organisations to deal with adverse economic conditions than other private sector organisations.

Existing Relationship with Axis Bank

Although the bank has not disclosed offering favourable Axis Bank Personal Loan interest rates for its existing customers, many lenders provide personal loans at concessional interest rates to their existing lending/deposit account holders. Hence, prospective personal loan borrowers should first contact their lender(s) with whom they already have existing banking relationships as they have higher chances of getting concessional interest rates on their personal loan.

Tips to Avail Personal Loans at Low Interest Rates

• Maintain credit scores of 750 or above.
• Enquire about the pre-approved personal loan offered by different lenders.
• Track the personal loan interest rates provided by top banks/NBFC, especially during festive seasons.
• Find out if your existing bank/NBFCs, with whom you share a banking or lending relationship, can provide personal loans at concessional interest rates.
• Visit online financial marketplaces to check and compare Axis Bank Personal Loan interest rates with the interest rates offered by other lenders.

FAQs

What is the current interest rate of Axis Bank Personal Loan?

The current interest rates offered by Axis Bank for its personal loan scheme starts from 11.25% p.a.

How to get the lowest personal loan interest rate from Axis Bank?

Axis Bank has not disclosed the differential personal loan interest rates based on its loan applicants’ credit score, income, EMI/NMI ratio, etc. However, applicants scoring better in terms of their credit score, monthly income, occupation profile, etc. are usually offered personal loans at lower interest rates than others.

Are Axis Bank Personal Loan interest rates offered at fixed or floating rates?

Axis Bank offers personal loans at fixed rate of interest.

How does Axis Bank set interest rates for its personal loan applicants?

Axis Bank may consider its loan applicants’ credit scores, income, loan amount, etc. while setting the personal loan interest rates.

How to calculate the Axis Bank Personal Loan interest costs?

Prospective personal loan applicants can use the Personal Loan EMI Calculator to know their overall interest costs for different combinations of loan amounts and tenure based on the interest rates offered by the bank.

What are Axis Bank Personal Loan interest rates for salaried applicants?

The lender offers personal loan interest rates of 11.25% p.a. onwards for its salaried loan applicants. However, the final interest rates set by the lender for its loan applicants depend on their credit scores, income and the loan amount.

What is the Interest rates for Rs 1 Lakh Personal Loan in Axis Bank?

Axis Bank has not disclosed the differentiated interest rates for its personal loan applicants based on their loan amount. The interest rates offered by the lender for Rs 1 Lakh Personal Loan will also depend on its loan applicant’s credit scores, monthly income, repayment capacity, etc.