Interest Rates on Personal Loans by Axis Bank in 29th November 2020
||10.99% to 16.99%
||Rs. 50,000 to Rs. 25 Lacs
||12 months to 60 months
||Up to 1.75%
It is allowed after payment of 1 EMI
|Part Prepayment Charges
It is allowed after payment of 1 EMI
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.
Features of Axis Bank Personal Loan Interest Rate
Here are the features:
The interest rate is between 10.99% and 16.99%. The rate will depend on your repayment capacity, loan amount, tenure, monthly income, and other factors.
Existing borrowers can take a top-up loan at starting rate of 10.99%. This loan acts as additional funding for your needs.
Apart from rate of interest, other charges include that for EMI bounce, late EMI payment, loan cancellation, and others.
For the lowest rate, you need 750+ CIBIL score. The rate gets lower for those with CIBIL score nearer to 900.
The bank offers lowest interest rate and charges for borrowers with a great repayment track record with it, a good financials and repayment capacity.
Axis Bank Personal Loan Charges
You need to compare other charges along with interest rate before deciding on borrowing from a particular financial institution:
- Processing Fee: This is a non-refundable fee. It is taken by the bank at the start of the loan disbursal, or it may be a part of EMI. The processing fee is up to 1.75% of the principal amount along with applicable tax.
- Foreclosure Charges: You can entirely pay off the outstanding amount after the payment of 1st EMI. Preclosure is allowed after payment of 1st EMI, and there are no charges for the same. If you have additional funds in hand, you can save on the total loan cost through foreclosure.
- Part Payment Charges: You can prepay a part of the outstanding amount after paying 1st EMI. A reduction in principal amount will also reduce the interest payout. There are no charges for part prepayment.
- Other Charges: Once the bank sanctions the loan, it will provide a statement of charges along with the applicable rate of interest. Some of the charges include that for loan cancellation, EMI cheque bounce, late payment, etc.
Factors that Influence Axis Bank Personal Loan Rate
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.
- Loan Amount: The amount you request for borrowing is the principal or the loan amount. Banks offers the lowest rate for higher loan amount, and vice-versa. From Axis Bank, you can borrower anywhere between Rs. 50,000 and Rs. 25 lacs.
- Tenure: Longer tenure may carry a lower rate of interest, and vice-versa. The tenure ranges between 12 months and 60 months. A shorter tenure may decrease the interest payout. So, you can opt for a shorter loan term to save on the total loan cost.
- Monthly Income: The bank will check your capacity to repay the loan. In this case, your monthly income will be looked into. A higher salary bracket will leave you with higher disposable income. This may convince the bank to apply a lower rate of interest and vice-versa.
- Grade of Employer: The bank may have an internal list of companies graded from high to low as per company’s reputation, size, existing relationship with the financial institution. Employees working for companies higher on the grading list will get a better rate of interest and discount.
- Repayment Capacity: The bank will check your repayment capacity. It will go through your CIBIL report and score. The report will give information about previous loans taken, credit card bills, payments, and a lot more. This will allow the financial institution to understand if you can afford the EMIs, and how much the EMI amount and tenure should be, and the rate of interest.
- Relationship with the Bank: The financial institution may offer lower rates, charges, and better offers to loyal customers, and those who have had made regular payments in the past.
Axis Bank Personal Loan Cost and Interest Amount
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
Principal Loan Amount: Rs. 1 lac
Tenure: 12 months to 60 months
Interest Rate: 10.99% to 16.99%
Processing Fee: Up to Rs. 2,000 or up to 1.75% of the principal amount
Fee to Loanbaba: No fee
Monthly Cost: If the loan is for 60 months, the loan amount is Rs. 1 lac, interest rate 10.99%, then the EMI amount will be Rs. 2,174. For the borrowing is for 12 months at 16.99%, the loan amount is Rs. 1 lac, then the EMI amount will be Rs. 9,120.
Axis Bank Personal Loan EMI and Amortization Calculation
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.
Axis Bank Personal Loan EMI
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.
||1 Year Loan
||5 Year Loans
||3 Year Loans
|Rs. 1 Lac
|Rs. 5 Lac
|Rs. 10 Lac
Here is another illustration of EMI for different tenures and loan amounts at 10.99% interest rate:
As you keep paying the EMIs, the interest component and principal repaid changes too. The principal portion increases, and the interest component reduces with each EMI.
From this illustration, it is evident that loan amount taken at lower rate of interest attracts lower EMI. Also, the tenure and loan amount influence the EMI. The monthly instalment is higher for shorter tenure, but the total cost of the loan is lower, and vice-versa.
Here is an illustration of total loan cost at 10.99% for different tenures:
|Loan Amount Rs. 1 lac at 10.99%
|Total Repayment (Principal + Interest)
||Rs. 1.12 Lacs
||Rs. 1.30 Lacs
||Rs. 1.18 Lacs
The above example shows that EMI paid on longer tenure is lower, but the interest payout is higher, and vice-versa. For instance, EMI is Rs. 2,174 for 60 months tenure for Rs. 1 lac. But the interest outgo is Rs. 30,440 for borrowing Rs. 1 lac.
But in case you take a loan for 2 years of Rs. 1 lac at 10.99%, then the EMI is Rs. 4,660, and the interest go is only Rs. 11,840. Thus, the interest payout for 2-year loan is lower than for 1-year loan.
Frequently Asked Questions for Axis Bank Personal Loan Interest Rate
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.
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