|Interest Rate||10.99% to 16.99%|
|Loan Amount||Rs. 50,000 to Rs. 25 Lacs|
|Loan Tenure||12 months to 60 months|
|Processing Fee||Up to 1.75%|
|Part Prepayment Charges||
Axis Bank Personal Loan Interest Rate starts at 10.99%. The loan amount is between Rs. 50,000 and Rs. 25 lacs. The tenure ranges between 12 months and 60 months. You can preclose or do part-payment after paying the 1st EMI. The lowest EMI per Rs. 1 lac is Rs. 2,174. You can avail this loan if you fall in the age group of 21 years and 60 years. The bank offers loan to both salaried and salaried-employed professionals. It gives loans for purposes such as home renovation, medical emergency, travel, and other personal requirements.
In this post, we will discuss about features of personal loan interest rate Axis Bank, other charges, factors that influence the rate of interest, illustration of loan’s total cost, interest and EMI calculation, amortization schedule, and frequently asked questions.
Here are the features:
You need to compare other charges along with interest rate before deciding on borrowing from a particular financial institution:
You can expect the lowest rate from the bank after assessment of your salary, loan amount, financial liabilities, employment, and other details. Here are the factors that influence the loan interest rate.
Here is an illustration on the total cost of personal loan:
|APR or Annual Percentage Rate||10.99% to 16.99%|
|Total cost of the loan + Fees||
Here is the EMI calculation formula:
P*r* (1+r) ^n/([(1+r) ^n]-1)
In the above formula,
P = The principal and loan amount. You can borrow between Rs. 50,000 to Rs. 25 lacs
r = The monthly interest rate. Lowest rate is 10.99%
n = It represents tenure in months. The tenure is from 12 months to 60 months
If you want to understand the periodic loan payments, then look for amortization schedule. It shows the principal and interest component in each monthly instalment, and the EMI at the end of the tenure. The monthly instalment amount will be the same, but the interest and principal amount will change with payments.
EMI or equated monthly instalment is a fixed amount you need to pay to the bank towards the loan repayment. This amount comprises of both principal and interest component. You have to pay the EMI on a fixed date every month till the loan is paid entirely. The lowest EMI per Rs. 1 lac is Rs. 2,174. The EMI depends on the loan amount, interest rate, tenure, your monthly income, and other factors. Here is an illustration of the EMI amount for different loan amounts and tenures.
|Loan Amount||1 Year Loan||5 Year Loans||3 Year Loans|
|Rs. 1 Lac||Rs. 8,838||Rs. 2,174||Rs. 3,273|
|Rs. 5 Lac||Rs. 44,189||Rs. 10,869||Rs. 16,367|
|Rs. 10 Lac||Rs. 88,377||Rs. 21,737||Rs. 32,734|
Here is another illustration of EMI for different tenures and loan amounts at 10.99% interest rate:
|Loan Amount||2 Years||5 Years||3 Years|
|1 Lac||Rs. 4,660||Rs. 2,174||Rs. 3,273|
|3 Lacs||Rs. 13,981||Rs. 6,521||Rs. 9,820|
|5 Lacs||Rs. 23,302||Rs. 10,869||Rs. 16,367|
|10 Lacs||Rs. 46,603||Rs. 21,737||Rs. 32,734|
Here is an illustration of total loan cost at 10.99% for different tenures:
|Calculated Results||2 Years||5 Years||3 Years|
|Loan Amount Rs. 1 lac at 10.99%||Rs. 4,660||Rs. 2,174||Rs. 3,273|
|Total Repayment (Principal + Interest)||Rs. 1.12 Lacs||Rs. 1.30 Lacs||Rs. 1.18 Lacs|
|Interest Amount||Rs. 11,840||Rs. 30,440||Rs. 17,828|
Here are the Personal Loan Interest Rate Axis Bank FAQs:
Axis Bank gives personal loans at lowest rate of 10.99%. The highest rate is 16.99%. It is a competitive rate of interest with EMI of Rs. 2,174 per Rs. 1 lac for shortest tenure of 12 months. You can even for top up loan and balance transfer.
You can borrow between Rs. 50,000 and Rs. 25 lacs. Higher the loan amount, greater would be interest payout, and vice-versa. So, you should borrow only the amount you need. This will keep the loan cost affordable, and you do not have to pay interest on the amount you actually do not need.
The tenure by the bank is from 12 months to 60 months. The shorter the tenure, lower will be the rate of interest but higher will be the monthly instalment amount, and vice versa. So, if you wish to save on total cost of the loan, then choose the shortest tenure, or as per your repayment capacity.
Your credit score depicts your repayment capacity. For a personal loan, CIBIL Score of 750+ is required for approval. CIBIL score nearer to 900 will boost your chances of getting the best rate. A lower credit score will increase the chances of loan application rejection.
A good repayment capacity, healthy credit history, and high disposable income will help secure a lower rate of interest. If you have a stable relationship with the bank and work for a high-grade employer, then you may get the best interest rate.
The processing fee is up to 1.75% of the principal loan amount. Taxes if any, will be applicable separately. Processing fee is charged at the start of the loan. It is non refundable even when the loan is cancelled by you.