There are multiple instances, where Axis Bank’s Personal Loan Interest Rate varies even between two people who have opted for the loan at the same time in the same bank. This means that the rate of interest will be different for individuals on the basis of several factors – with the variations caused by market fluctuations topping the list.
Here are the different factors that cause change in the Axis Bank Personal Loan interest rate.
1. Credit Score
The interest rate of Axis bank personal loan will vary depending on the CIBIL score of a customer. This score is a measure of the worthiness of the customer in terms of repayment of the loan – a direct sign of the financial record. So, if you need a low-interest rate, you will have to focus on keeping your Credit Score strong. Make sure that you do not default any payment for this would directly affect your credit score, bringing your worthiness down.
2. Employment Type
The employment type has a direct impact on personal loan interest rates. The interest rate does vary on the basis of the company you are associated with.
If you are employed in an established company, the rate of interest that you might be charged will be a lot less than if you are working in start-up or less known brand.
3. Your Income
If your income is well, you might be offered loan at low rate of interest. Being an unsecured loan type, it is sanctioned on the repayment capability of the borrower. So, going by the logic, if a person earns more, they are more likely to repay their loan – thus the interest rate is much lower.
According to the bank’s trend, in case your income is upto Rs. 50,000 bank might charge something between 16 and 20%, while if the income is between Rs. 50,000 and Rs. 1 Lakh, the interest will come down to 12-16%
4. Amount of Loan
The interest rate on your personal loan might change with loan amount that you borrow.
5. Relation between the Customer and the Bank
When you are an existing Axis bank customer and have a fixed deposit and savings account, you become a valued customer. And when you become the valued customer, the bank would allow lesser rate of interest approval.