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Axis Bank Personal Loan Interest Rates: When you’re looking to meet urgent financial needs, be it for a wedding, medical emergency, or travel, Axis Bank personal loans can offer timely support. These loans stand out for their competitive interest rates and transparency.
In this blog, we’ll take a closer look at Axis Bank’s personal loan interest rates, including the minimum, maximum, and average ROI (Rate of Interest). Let’s explore the latest interest rates and calculations further.
Table of contents
What is the Axis Bank Personal Loan Interest Rate?
Axis Bank personal loans are offered at interest rates that begin at a competitive margin of 4.65% over the 1-year MCLR (Marginal Cost of Funds-based Lending Rate). This results in an effective ROI ranging between 11.25% and 22%, depending on various factors.
However, for the disbursal period between Oct 2024 to Dec 2024, here’s the updated breakdown:
| Product | Min ROI | Max ROI | Mean ROI |
| Personal Loan | 10.55% | 21.80% | 12.95% |
These rates include both fixed and floating interest rates and may vary based on the customer’s profile, loan amount, repayment capacity, and relationship with the bank.
Key Highlights
- Minimum Interest Rate: 10.55% p.a. It is offered to borrowers with strong credit profiles and stable income.
- Maximum Interest Rate: 21.80% p.a. It is usually applicable for higher-risk borrowers.
- Average Interest Rate: 12.95% p.a. This is the mean rate calculated by averaging all loan interest rates disbursed in the given quarter.
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Features of Axis Bank Personal Loan Interest Rates
Axis Bank offers competitive and transparent personal loan interest rates that cater to diverse financial needs. Here are the key features:
- Attractive Starting Rates: Interest rates begin from as low as 11.25% per annum, helping borrowers save on overall loan costs.
- Fixed Interest Rate Structure: Axis Bank provides fixed interest rates, simplifying financial planning and EMI management.
- Rate Determined by Multiple Factors: Your credit score, income, and loan amount influence the final interest rate.
- Scope for Lower Interest: By maintaining a strong credit score, timely repayments, and a low debt-to-income ratio, borrowers can potentially reduce their interest rates.
- Transparent Calculation: The bank ensures clarity by linking interest rates to MCLR (Marginal Cost of Funds Based Lending Rate), updated quarterly.
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Factors Affecting Axis Bank Personal Loan Interest Rates
Axis Bank’s personal loan interest rates are linked to its Marginal Cost of Funds Based Lending Rate (MCLR), which is revised every quarter. These regular adjustments help the bank stay in line with prevailing market trends while offering competitive and affordable rates to borrowers.
Several key factors influence the interest rate you may be offered:
- Credit Score: A higher credit score indicates good creditworthiness, often resulting in a lower interest rate.
- Income Level and Employment Status: Applicants with a stable job and higher income are seen as low-risk, which can positively impact the interest rate.
- Existing Relationship with Axis Bank: Long-standing customers or those with a strong banking relationship may receive preferential rates.
- Loan Amount and Tenure: The amount you borrow and the repayment period can also affect the interest rate. Generally, higher loan amounts or longer tenures may attract slightly higher rates.
To sum up, Axis Bank provides flexible personal loan options with interest rates designed to suit a wide range of financial profiles.
Whether you’re a salaried individual or a self-employed borrower, understanding the current interest rates, like the 10.55% to 21.80% p.a. range can help you make informed financial decisions.
Always check the latest rates and evaluate your loan eligibility before applying. A small difference in interest rate can lead to significant changes in your total repayment amount.
Check out the FAQs below for more information.
FAQs
Axis Bank offers personal loan interest rates ranging between 10.55% and 21.80% per annum as of the disbursal period from October 2024 to December 2024. The average rate stands at 12.95% p.a.
The minimum rate of interest is 10.55% p.a., typically offered to borrowers with excellent credit scores, strong income profiles, and a stable financial background.
The maximum interest rate is 21.80% p.a., usually applicable to borrowers with higher credit risk or less stable financial situations.
Axis Bank offers fixed interest rates for personal loans. This makes EMI calculations predictable and easier to manage throughout the loan tenure.
Axis Bank calculates the personal loan interest rate by adding a margin (starting at 4.65%) over the 1-year MCLR. Factors like your credit score, income, loan amount, and repayment history also influence the final rate.
Yes, you can lower your interest rate by improving your credit score, repaying debts promptly, maintaining a low debt-to-income ratio, and having a good relationship with the bank.
The mean interest rate offered by Axis Bank during Q4 FY2024 (Oct–Dec) was 12.95% p.a. This represents the average ROI across all borrowers for that period.
Key factors include:
– Your credit score
– Monthly income and employment status
– Existing relationship with Axis Bank
– Loan amount and tenure
Axis Bank maintains transparency by linking interest rates to MCLR, which is revised quarterly based on prevailing market conditions. This ensures borrowers are charged fair and updated rates.
You can use the Personal Loan EMI Calculator available on the Axis Bank official website to check your loan eligibility, compare interest rates, and estimate monthly EMI payments before applying.
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