Blog #Axis Bank Personal Loan

Almost every central competent person is eligible to get a personal loan. Personal loans can be borrowed for any purpose without pledging any collateral. A salaried person can also obtain a personal loan but need to meet some eligibility criteria. These basic criteria include income, credit score, age, and some other details.

A personal loan has always been a better option when people run out of funds for a child's education, paying off a pending debt, home renovation, medical emergency, planning a foreign holiday, or a family wedding. Therefore, a personal loan is an ideal solution for every urgent financial requirement that a family has. Axis Bank Personal Loan or any other personal loan is credit provided to an individual by a Bank or Financial Institution without asking for any collateral or security in exchange.

Any legal purpose can be met with the funds provided by a personal loan either than the ones mentioned above. These loans are unsecured as no collateral deposits are asked to be given against it to the creditors. But companies and organizations, though they have separate legal entities, are not eligible to get a personal loan. On the other hand, both salaried and self-employed people are eligible to get a personal loan. The eligibility criteria of the two categories are almost identical but are different considering some factors.

The repayment period of a personal loan can extend from 12 months to 60 months for a salaried employee depending upon his salary, the organization he works for, and the amount of service he had in service. Nowadays, a personal loan can be applied via net banking through the online sites of Banks and NBFCs or can be applied traditionally by visiting the branch. The bank customers who are salaried employees can apply for a pre-approved personal loan and get a quick disbursal.

An application form of a personal loan should be duly filled by the salaried employee and documents proof of Identity, address, and income must be attached to get the loan. The personal loan limit depends on the creditworthiness and other additional debts taken by the applicant. However, the lending institution can extend the limit if the applicant can do proper negotiation. EMI Calculator for Personal Loan is available with every lending institution, which can tell the customer how much monthly installment he needs to pay for the personal loan he chooses to apply for.

Salaried employees of a public sector undertaking, including the central, state, and local bodies or private limited companies, can get a personal loan. The individual must be within the age of 21 to 60 years, with a minimum monthly earning of Rs 25000. He must be working for at least one year with the current employer and have a job for at least two years in total. Many Banks do not ask for much documentation if the applicant is a KYC compliant Bank customer.

Identity proof of the salaried employee and the address proof like a copy of Passport, Voter ID card, Driving Licence, or Aadhar Card with Form 16 is required for getting a personal loan. The bank statement of the previous three months of the salary account with passbook details and two latest salary slips or salary certificates must also be given for applying for a personal loan. The rack interest rate for a salaried employee ranges from 10.5 per cent to 21 percent. The loan processing charges can go up to 2.5 % of the loan amount, subject to a maximum of Rs 25,000 for salaried customers of the bank. The stamp duty and other statutory charges are applied according to the laws of the state.

A salaried employee who wants to get a personal loan with lower interest rates and get qualified for it shortly needs to improve his credit score. If he pays off the unsettled dues, it increases the credit utilization ratio and boosts the credit score. Making monthly repayment for loans and other debts can improve the credit history of a person. People should look out for low-interest rates, evaluate all fees and repayment terms, and find creditors who allow co-signers; before taking a personal loan from any lending institution or lender.

Read More:- Festive Offer In Personal Loan 

A personal loan is an unsecured loan that the world’s population has been making use of for more than half a century. And the need for it is only growing like five or even two decades ago, people are no longer required to travel miles and negotiate terms with a banker to sanction money. With the tremendous growth of technology and the ever-present 4G internet, you can avail of this loan online with no trouble at all. The terms and conditions with the factors and eligibility criteria are provided on the official website of the bank or NBFC you want to avail loan on. Online processing of a personal loan 

• Open the official website of the bank or NBFC and select a personal loan application online from the menu bar.
• The option leads you to an application page that asks for your name, age, phone number, address, Pincode, mail id with other basic details.
• The second page asks for your monthly income, banking details, CIBIL score, loan amount required, tenure period, and using that the page displays your monthly interest amount 
• After that the screen for documents is presented, where the basic documents of you are asked like ID proof, residence proof(PAN card, Voter ID, aadhar card, passport, driving license(any one can be submitted)), income proof(ITR, form 16, salary slips), employment proof(employee id). Bank statement(account book). You have to scan and upload all the original documents properly.
• After that submit your application.
• Upon receiving the application, the bank verifies all your credential and approves if it has complete trust and satisfaction.
• After the approval, the finance sends you a digital document detailing the loan and specifying the additional charges like preclosure fee, processing charge, and taxes and requests for your digital signature.
• After the signing, the money is then disbursed within several hours or at the most in 2 days.

Axis Bank personal loan details 

Axis bank is a reputed bank that has branches all around the world with millions of customers availing of personal loans regularly. The bank is a private company with high-end people in the business as account holders. The ratings of the bank are impeccable and the loan offers are affordable.

Eligibility criteria

• The age requirement to avail of this loan is a minimum of 21 years with a maximum age of 60 at the time of maturity of the personal loan.
• The applicant must be a salaried professional (private or public sector).
• The minimum salary of the applicant must be Rs15,000per month.

Axis Bank loaning details

Axis Bank personal loan offers both online and offline services. The loan amount the bank offers for a personal loan is a minimum of Rs 50,000 up to Rs 15 lakh. The tenure of the loan lies in the range of 1 year to 5 years with minimal documentation. The interest rate of the personal loan varies from 10.49% per annum to 21% per. The bank also charges various other taxes and other charges. The processing fee is one among them, that is charged for the processing and approval of the application. The fee in Axis Bank is Rs 500 plus GST. Preclosure or foreclosure is another such charge that is incurred if the applicant closes the loan before the end of tenure. The charge is 5% for 0 to 12 months, 4% for the second year, 3% for the third year, and 2% for the last two years.

Conclusion  

The personal loan although easy to avail still needs the loan to be paid back by the applicant. The CIBIL score of the applicant depends gravely on the monthly instalment of the loan, if the bank or NBFC sees regular on-time payments the credit score increases else the credit score decreases hindering the possibility of availing of loans in the future. For any further information, the contact details of the bank are on the official website.    

Also Read:- Can I get a personal loan without salary slip? 

Personal loan sanctions one to borrow money to finance personal expenses and then return that amount over a period of time. Personal loans are a type of instalment debt that allows you to obtain a lump sum capital. For example, one might use a personal loan to pay for - Moving costs, Debt repayment, Medical bills, Marriage expenses, Home renovations, Funeral expenses, Vacation expenses, Unexpected costs, etc.

These loans are unlike other instalment loans—such as student loans, car loans, and mortgage loans—that are used to fund specific expenses (i.e. education, car purchase, and home purchase)A salary slip is a document delivered by an employer to an employee. It holds a comprehensive account of the employee’s remuneration elements such as house rent allowance (HRA), leave travel allowance (LTA), bonus paid, etc., and withdrawals for a stated period, usually a month. 

It could be issued on paper or mailed to the employee. Employers are legally required to give salary slips to their employees periodically, as evidence of salary settlements to employees and withdrawal made.

For the purpose of measuring one’s repayment capabilities, money lenders look into one’s financial profile before sanctioning a loan. Part of this involves checking one’s income and validating it through their salary slips. That being said, it is possible for one to get a personal loan without salary slips, too, especially if one is self-employed. At times the procedure involves exhibiting alternate sources of income and sometimes establishing a rapport with their lender and maintaining a high credit score.

Six recommendations to obtain a Personal Loan without a salary slip are - 

Produce an alternative origin of income

If one is self-employed. A freelancer earning in cash or working on a contract; then one can seek a personal loan without a salary slip. In synch a scenario, one needs to show other financial statements to verify their income; it can be in a bank statement, income certificate, form 16, or ITR. A stable source of income reassures the bank of one’s repayments capabilities and helps one obtain a personal loan.

Maintaining a high credit score 

When one is self-employed or facing unemployment for a period of time, it is crucial to maintaining a good credit score. This number reflects one’s repayment history, credit handling capabilities, and debt status. It serves as evidence of one’s creditworthiness in front of the money lenders. It indicates the approach adopted by one towards debts. Maintaining a credit score of 750 or above displays creditworthiness.

Offer to pledge an asset as collateral

In the event one lacks the financial strength at present, enquire if the moneylender sanctions asset-backed loans. Good securities such as high-value FDs, mutual funds, or gold gives one something other than just their financial profile. They were offering to pledge an asset as security improves the chances of obtaining a personal loan without a salary slip.

Enlist for the loan with a co-applicant

Signing up for a personal loan with a co-applicant with a high credit score can play a crucial role in obtaining a personal loan without one’s salary slip. This is because it will increase the lender’s trust and confidence in one’s repayments abilities. The co-applicant serves as a secondary source of repayment. Therefore if one fails to make the repayment, the lender can bank on the co-applicant to repay the amount.

Find a moneylender with easy conditions 

When trying to obtain a personal loan without a salary slip, it is vital to find a moneylender who maintains simple criteria. This will allow one to get a hassle-free application, verification, and approval. A lender that offers simple eligibility terms is Axis Bank Personal Loan.

Establish a good relationship with your bank

By being loyal to it for all financial and non-financial services. This helps in maintaining trust with the bank, which then decides one’s loan competence as well as one’s repayment capacity. If one is applying for a personal loan at the same bank, where one’s current account or savings account is located, it becomes easier for the bank to consider them competent for a personal loan. As the bank is fully aware of all the transactions being made on their account, it helps them assess one’s creditworthiness.
Must Read:- REPAYMENT OF PERSONAL LOAN