Axis Bank is India’s third largest private sector bank, specializing in a wide range of innovative financial services tailored to large companies and small businesses, agriculture, and retail. It was founded in 1994 and currently has 3,779 domestic branches across 2,211 locations in India, including extension counters. A global presence is not limited to India, with branches in Hong Kong, Singapore, Shanghai, Dubai, and Colombo.
Personal loans from reputed lenders like Axis Bank are a great way to borrow funds in times of need. With a low EMI personal loan, you can fulfill just about any financial obligation, whether it is a wedding, medical expenses, a dream vacation, or your own needs. Here’s what you need to know about getting a 24×7 personal loan from Axis Bank and how your CIBIL will affect it.
Overview of Personal Loans from Axis Bank
An unsecured personal loan is a tailor-made loan sanctioned by a bank to meet the financial objectives of an eligible borrower. For securing a personal loan, a good CIBIL score is important. To maintain their CIBIL score for Axis Bank Personal Loans, borrowers need to follow certain guidelines.
Axis Bank is a leading private-sector bank in India. There are many national and international customers across the globe who rely on the bank for their day-to-day banking needs, as well as for their unique banking solutions. Axis Bank offers a wide range of loan products to eligible applicants. Among the bank’s loan products are personal loans.
These loans are only available to applicants who meet Axis Bank’s eligibility criteria. Parameters such as these include
- Salary applicants (doctors, employees of private and public companies, government employees, PSUs, central and local government employees)
- Applicants must be 21 years old or older at maturity of the loan (maximum 60 years old).
- Income of the applicant (Rs. 15,000 per month)
Additionally, the applicant’s monthly expenses, relationship with the bank, and credit score impact eligibility.
The importance of CIBIL score for personal loans with Axis Bank
Axis Bank personal loans require a good CIBIL score for the following reasons:
- It reflects your credit history and payment behavior:
CIBIL scores are determined by various factors, including credit history, on-time payments on existing loans and credit cards, number of loan applications, and current loans. Your creditworthiness is clearly outlined by Axis Bank. Using this information, they can determine the likelihood of retrieving the loan amount within the specified timeframe. Most banks and financial institutions require a minimum CIBIL score of 750 to approve a personal loan from Axis Bank. Moreover, if you have a good CIBIL score, the loan amount is also credited to your bank account in no time. Axis Bank personal loans are less likely to be approved if your CIBIL score is lower.
- Your CIBIL Report determines the amount of your personal loan: A good score reveals your credit health and debt repayment habits. As a result, Axis Bank has a higher level of assurance that the dues will be repaid. Axis Bank assesses your loan eligibility based on your CIBIL score for personal loans. Furthermore, a high CIBIL score may allow you to negotiate a larger loan amount. On the other hand, if your CIBIL score is low, you will have to accept the loan amount offered to you.
- You can negotiate the interest rate on your loan amount: If you have a good CIBIL score for an Axis Bank personal loan, you may be able to negotiate the interest rate on your loan amount.
Axis Bank Personal Loan Features
Axis Bank Personal Loans are explained in the following paragraphs.
- Employees on salaries, salaried doctors, employees of public and private limited companies, employees of public sector undertakings, and government employees are eligible for the program.
- At the time of maturity, applicants must be at least 21 years old but not over 60 years old
- There must be a minimum net monthly income of INR 15,000
- INR 50,000 is the minimum personal loan amount, and INR 15 lakh is the maximum
- A range of 15.75% to 24% is applicable to the interest rate.
- There is no prepayment required
- The repayment term ranges from 12 to 60 months
- Axis Bank offers better terms on loans transferred from other banks
- Upon submission of certain documents, personal loans can be approved hassle-free and quickly
- There are loans available with eDGE loyalty points.
- The loan processing charge ranges from 1.50% to 2%, but taxes are not included
- The charge for CIBIL Reports is INR 50 per set, service charges are not included
Probable Reasons for Axis Bank Personal Loan Rejection
In most cases, Axis Bank’s personal loans are rejected for the following reasons:
- Before applying for a personal loan from Axis Bank, borrowers should check their CIBIL score regularly. Overdue payments, current balances, incorrect personal information, etc., may contribute to a low CIBIL score.
- Here’s what to do if your CIBIL score is low, despite all the data in the report being accurate.
- Keep your CIBIL score high by not defaulting on future repayments
- Despite all previous loan applications being rejected, prevent frequent loan applications over a short period of time
- Make sure you do not apply for another loan if you already have one
- Try deferring your loan application until your CIBIL score reaches at least 750 if your score is below 750. Your credit score will be further damaged if you are rejected for a loan.
- Lack of credit history occurs when you have never applied for a loan, don’t have a credit card, or don’t use it. Axis Bank finds it difficult to assess your creditworthiness when you don’t have a credit history. As a result, they may not consider personal loan applications from individuals without CIBIL scores. You can build a credit history by following these steps.
- Secured loans are easy to obtain from lenders.
- Make use of a credit card. Get a credit card against a fixed deposit if your credit card application is rejected. As soon as possible, switch to a regular credit card.
- Consider a secured loan, which is easily approved.
- When a salary account is held by a bank, salaried individuals are eligible for credit cards.
Axis Bank Personal Loan Tips for Improving CIBIL Score
Following these guidelines will help you improve your CIBIL score:
- You should avoid using a credit card with a low balance by paying off the entire accumulated balance as soon as possible.
- Don’t just pay the minimum amount due on your credit card, pay the entire amount. When the remaining balance is carried forward, it not only attracts a high rate of interest but also adversely affects your CIBIL score.
- To improve your CIBIL Score, make sure you pay your existing loans within the predetermined dates.
- The outstanding amount can be deducted on a specific date each month if you give your bank standing instructions to do so.
- Maintain enough balance in your bank account on the scheduled date in order to avoid heavy penalties in case of an unsuccessful auto-debit.
- Avoid settling your personal loan with Axis Bank.
- If you withdraw cash against your credit card, it reflects a poor credit habit and warns future lenders of your current financial difficulties.
- Before applying for a personal loan, review your CIBIL report carefully for inaccuracies, omissions, repetitions, and fraudulent transactions. Your CIBIL score may have been affected by these factors, which may have resulted in your personal loan application being rejected. To obtain a loan, raise a dispute with CIBIL.
- You should read the loan terms and conditions carefully before proceeding, to avoid damaging your CIBIL score.
FAQs
1. What is Axis Bank’s minimum credit score for personal loans?
A. Axis Bank requires a minimum credit score of 750 for personal loans.
2. Does Axis bank offer personal loans to self-employed individuals?
A. Unfortunately, no. Only salaried employees can apply for personal loans at Axis Bank. Applicants may be salaried or employed by any of the following entities:
- Medical professionals
- Company Limited by Shares
- Companies with private limited liability
- Governing bodies
- PSUs
- The central government and the local government
3. Is the Bank able to provide personal loans to people with 800 credit scores?
A. Yes. Bank personal loans can be acquired easily and without hassles by people with credit scores of 800.
4. How does a person’s credit score get calculated?
A. Credit scores are determined by the following factors:
- Payment history of the applicant
- Applicant’s credit usage
- The applicant’s account duration
- Loan types
- Lenders’ inquiries for credit/loans.
