To understand the differences and make an informed decision, a thorough comparison of Axis Bank Personal Loan Interest Rate v/s ICICI Bank Personal Loan Interest Rate and all other loan terms and conditions are needed. Keep in mind that each bank’s scheme has its own set of advantages and disadvantages that must be weighed before deciding on the best deal.
The following are some of the most important findings and common data for the two banks comparison:
- Axis Bank Personal Loan has the lowest interest rate of 10.40 %, which is lower than ICICI Bank’s lowest interest rate of 10.75 %. As a result, Axis Bank is providing a lower-cost loan alternative.
- When it comes to other personal loan fees, such as processing fees, Axis Bank charges up to 1.75 % of the loan amount, with a minimum of Rs.4,999, while ICICI Bank charges up to 2.25 % of the loan amount.
- Personal Loans up to Rs 30 lakhs are available from ICICI Bank, while Personal Loans up to Rs 25 lakhs are available from Axis Bank. If you’re looking for a high-value loan, ICICI Bank could be a better option.
- The foreclosure facility is one aspect that makes a Personal Loan a safer choice. Axis Bank allows you to close the loan after one month for 1-12 EMI-5 %, 13-24 EMI-4 %, 25-36 EMI-3 %, and Above 36 EMI-2 %, while ICICI Bank allows you to close the loan after six months for 5%. As a result, Axis Bank is a better Personal Loan choice.
- After one month, Axis Bank allows part payments on Personal Loans at 1-12 EMI-5 %, 13-24 EMI-4 %, 25-36 EMI-3 %, and Above 36 EMI-2 %, while ICICI Bank does not allow part-payments on Personal Loans. As a result, Axis Bank is a better Personal Loan choice.
- ICICI Bank has an average customer rating of 4.5, while Axis Bank has an average customer rating of 4.4, indicating that ICICI Bank prioritizes customer support, offers a simple Personal Loan procedure, and responds quickly.
Axis Bank Personal Loan Interest Rate v/s ICICI Bank Personal Loan Interest Rate
The most significant factor in determining the overall cost of your Personal Loan is the interest rate offered. A lower interest rate means lower EMIs and lowers interest payments throughout the loan. Let’s take a look at the most recent personal loan interest rates provided by banks and non-bank financial companies.
Personal Loan Interest Rates: What Influences Them
- Credit History and Ranking: When you apply for some type of loan, a lender may first look at your credit history, including your credit score and study. Your creditworthiness is affected by your past credit behaviour and credit score. Your credit score is likely to be high if you have used credit wisely in the past. The better your credit score is, the more likely you are to be eligible for a low-interest personal loan.
- Income and Employer: A higher income implies a greater ability to repay the loan, which reduces the lender’s risk. This usually results in a lower interest rate on your personal loan. Furthermore, if you work for a reputable large company, such as a multinational corporation (MNC) or a government agency, Banks and NBFCs can view your employment as stable and therefore give you a personal loan at a lower interest rate. Since it can be difficult for lenders to correctly measure the profits of the self-employed, salaried workers have a greater chance of getting a personal loan at a lower interest rate.
- FOIR stands for Fixed Obligation to Income Ratio: The percentage of the monthly income that you use to pay off current loan EMIs and credit card bills is another important consideration that lenders consider when processing your application. This is measured using FOIR, which is the ratio of your monthly in-hand revenue to your pre-existing loan EMIs and credit card dues. If your FOIR is greater than 50%, lenders such as banks and NBFCs would consider it a negative factor that could affect your loan eligibility and interest rate.
- Credit Utilization Ratio: This is the percentage of credit that has been used compared to the total amount of credit available. Lenders interpret a higher Credit Utilization as a sign of over-reliance on credit, which can put one’s potential repayment ability at risk.
- Multiple loan applications in a short period: Applying for loans with multiple lenders in a short time is never a good idea. It’s important to understand that any time you apply for a credit product, it shows up on your credit report. If you have a lot of inquiries on your credit report in a short period, lenders can interpret this as a sign of ‘credit hungriness,’ which means you are desperate for credit. This will not only affect your ability to obtain a low-interest loan, but it will also undoubtedly lower your credit score.
- Relationship with the Lender (Pre-existing or Previous): Having a prior relationship with the lender may often affect the personal loan interest rate. If you already have a salary account or a credit card with a bank, it will calculate your risk based on your historical records. If the banks consider you to be a “safe and low-risk borrower,” there’s a good chance you’ll be offered a loan.
Conclusion:
We have provided the details of Axis Bank personal loan interest rate v/s ICICI Bank personal loan interest rate. To help you in getting the best suited and affordable Personal Loan for you to fulfill your all financial needs.
