Interest Rates and Charges
When considering a Personal Loan, it's essential to examine the low interest Personal Loan options available to you. Axis Bank offers Personal Loans with interest rates that begin at a competitive margin of 4.65% over the 1-year MCLR, resulting in an effective rate of interest (ROI) that ranges from a modest 10.75% to a maximum of 22%. This ensures you have access to some of the lowest interest rate Personal Loans available in the market.
The range in the interest rates charged accommodates different financial profiles and loan requirements, maintaining Axis Bank's commitment to offering fair Personal Loan rates.
Personal Loan interest rates vary on a quarterly basis as they are linked to the bank’s MCLR rates. This average interest rate is calculated to provide transparency and help customers make informed financial decisions. Keep in mind that these rates are subject to various factors, including the loan amount and the customer's relationship with the bank.
To navigate these rates effectively and understand the potential charges on your Personal Loan, you may utilize tools like the Personal Loan EMI Calculator provided by Axis Bank, ensuring you are fully informed about the financials related to your loan.
MCLR Rates
| Fixed Rate Loan |
1 Yr MCLR |
Spread over 1 year MCLR |
Effective ROI |
Reset |
| Personal Loan |
9.30% |
4.65%-13.65% |
10.75% to 22% |
No Reset |
Interest rates for Personal Loans
| Product |
Rate of Interest disbursed Jan'24- Mar'24 |
Mean Rate |
| Min ROI |
Max ROI |
| Personal Loan |
10.25% |
21.55% |
13.08% |
Note:
- It includes various categories like fixed rate/floating rate as applicable and is
based on factors such as loan amount, customer relationships, etc.
- Mean rate = Sum of rate of interest of all loan accounts / Number of all loan
accounts.
Personal Loan Charges
Looking for a Personal Loan online? Axis Bank offers the most attractive interest rates and charges on Personal Loans. Refer the table below to know more.
Schedule of charges**
| Repayment instruction / Instrument return charges |
Rs.339/- per instance of dishonor of cheque /SI/ECS/NACH debit instruction + GST as applicable |
| Swap charges (Cheque/Instrument) |
Rs.500/- per instance + GST as applicable |
| Penal Charges |
Financial Default*: 8% p.a. above applicable interest rate on the
overdue amount (subject to the aggregate not exceeding 24% per instance).
- There shall be no capitalisation of Penal Charges.
- The said Penal Charges will be subject to GST as per
applicable law on Goods and Service Tax in India, and GST will
be charged separately.
- *Financial Default includes all types of payment or financial
defaults/irregularities with respect to your Loan Account
|
| Duplicate statement issuance charges |
Rs.250/- per instance per set + GST as applicable.
|
| Duplicate Amortization schedule issuance charges |
Rs.250/- per instance per set + GST as applicable. |
|
Credit Information Companies (CICs) Report Issuance Charges
|
Rs. 50/- per instance per set + GST as applicable.
|
| No Dues Certificate generation charges (Duplicate) |
Rs.50 per instance per set + GST as applicable. |
| Stamp Duty Charges |
As per State Stamp Act |
| Part Payment / Pre-Payment Charges |
For Loans Disbursed 1st April 2024 Onwards.
|
| EMIs paid |
<=36 |
>36 |
| % Charge |
3% |
2% |
*Pre-payment charges shall be charged on principal outstanding
* Part payment charges shall be charged on the amount of part
payment
|
| Processing fee charges |
up to 2% of the loan amount + GST as applicable |
**(Subject to change as per Bank’s discretion from time to time)
** Goods and Services tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable)
**For loans onboarded through Sourcing partner/ LSP’s the features and rates schedule may vary. Click here for further details
Charges Post Loan Disbursement
Legal Charges
- To cover any legal processes required during the loan tenure
- To cover the bank's legal services to safeguard the loan contract
Repayment Schedule Charges
- ₹ 500 for every instance you require a change in your repayment schedule for your Personal Loan, with an additional GST as applicable.
- This fee accommodates the administrative work needed to update and maintain your loan account according to the new schedule.
Repayment mode change charges
- To change the mode of your loan repayment, for instance, from cheque to ECS, or from SI to NACH, a fee of ₹ 500 is charged per instance.
- This charge is exclusive of GST, which will be levied as per the current rate.
- Covers the administrative costs incurred due to the change in the repayment instrument or
Payment Return Charges
- In instances where a payment instruction fails, Axis Bank charges ₹ 339 per instance, plus GST.
- This fee is in place to handle the processing involved in such scenarios
- Does not affect your Personal Loan interest rate
Loan cancellation Charges & Rebooking Charges
- Cancelling or rebooking your loan may lead to certain fees,
- This is necessary for the bank to process these adjustments and maintain competitive Personal Loan rates.
Delayed instalment payment charge
- Late payments on instalments attract a penal interest of 24% per annum, or 2% per month on the overdue amount,
- This is meant to encourage timely repayment
Premature Closure Charges
Premature Closure Charges (For Full Payment): For full prepayment of the Personal Loan, a closure charge is applied. This is calculated on the outstanding principal amount.
Premature Closure Charges (For part-payment): For part payment the closure charge is calculated on the amount of part payment.
Banks levy closure charges to make up for the loss of expected interest income, ensuring the sustainability of low interest Personal Loans.
The foreclosure charges are as follows:
| If payment is made within 36 months of loan disbursement
| 5%+GST |
| If payment is made after 36 months of loan disbursement
| 2%+GST |
*For loans disbursed after October 4, 2023
