Axis Bank Eligibility Calculator
A salaried borrower can easily get an Axis Bank Personal Loan ranging from Rs.15,000 to Rs.15 lakhs with Fincity from the comfort of their couch. Features such as quick loan disbursal and a flexible tenure makes it easy to avail as well as repay.
Eligibility Criteria for Axis Bank Personal Loans
| Eligibility Criteria | Details |
| Minimum Age | 21 years |
| Maximum Age | 60 years when the loan reaches maturity |
| Minimum Net Monthly Income | Rs.15,000 |
| Minimum Loan Amount | Rs.50,000 |
| Maximum Loan Amount | Rs.15 lakh |
| Loan Tenure | 12 – 60 months |
| Occupation | Salaried employees |
Below is a list of criteria to qualify for an Axis Bank Personal Loan:
- The applicant should be a salaried employee; they can be a salaried doctor, an employee of a reputed public or private limited company or a government sector employee (including Public Sector Undertakings, Central as well as Local bodies).
- The applicant must be at least 21 while applying and a maximum of 60 when the loan matures.
- The applicant’s minimum net monthly income should be Rs.15,0000.
Factors That Can Impact Your Axis Bank Personal Loan Eligibility
A borrower’s eligibility for Axis Bank Personal Loan is decided by the lender based on a number of factors.
- Age: Before deciding the amount of interest an applicant is eligible for, the lender takes into account the fact that a younger applicant has a longer time to repay the loan.
- Net Monthly Income: An applicant should earn a salary of at least Rs,15,000 per month. A higher salary increases your Personal Loan eligibility.
- Credit Score: A good credit score indicates that the borrower has been responsible for handling credit previously and increases their creditworthiness. It’s advisable to maintain a credit score of 700 and above to strengthen your chances of accessing an Axis Bank Personal Loan.
- Current Salary Account with Bank: Most lenders give preference to their existing customers when it comes to availing a personal loan. An existing customer will also require minimum documentation as most of the formalities have already been conducted by the bank.
- Occupation: As mentioned earlier, the applicant must be salaried and working in the public or private sector.
Factors that Influence Your Credit Score for Personal Loan
The credit score is very important to lenders when they evaluate your eligibility for a personal loan. Let’s take a look at a few factors that may impact your credit score.
High count of unsecure loans: It’s better to maintain a healthy mix of secured and unsecured loans. A higher number of unsecured loans in your borrowing profile may negatively impact your credit score.
Multiple Loan applications: When an applicant applies for a loan with a number of banks simultaneously, their credit score gets impacted every time a lender submits an enquiry for credit report. If your personal loan application is rejected, it’s wise to first improve your creditworthiness and then reapply for better chances of approval.
High Utilization of Credit Limit: This is defined as the ratio of credit used to the total credit available to a borrower. A higher credit utilization indicates financial stress and poor credit management to lenders and is likely to influence your credit score. It’s always advisable to keep your credit utilization to less than 30%.
Late repayment of loan: Not sticking to payment due dates reflects bad credit behaviour and may affect your credit score negatively.
Other Factors That Impact Axis Bank Personal Loan Eligibility
A few other factors that Axis Bank looks into before approving your personal loan are:
Mode of Salary: Banks prefer that you get you salary transferred into your bank account rather than in cheque or cash. A bank transfer serves as a concrete proof of salary that works in favour of your loan approval.
Place of Residence: Axis Bank may look into your place of residence before deciding on approving your loan application. Certain areas associate with a history of bad credit behaviour by borrowers and are considered as part of a negative area list by the bank. Residential stability indicating how long you have been living in your current residence is also an important factor for the bank. A minimum of 12 months of residency in the current location is generally required.
Type of Industry: Axis Bank also has a negative list of professions and industries that are not eligible for a loan with the bank. So, make sure your profession and industry are aligned with their criteria list.
Job stability: Most banks are comfortable to offer loans to borrowers with a stable job. Axis bank looks for a minimum work experience of 12 months. They also look into your total work experience as well as your current work experience.
How to Improve Axis Bank Personal Loan Eligibility
There are certain guidelines you can follow to improve your Axis Bank Personal Loan eligibility. Here we note down a few of them:
- Improve Credit History and Score: Every lender considers your credit score as a vital indicator of your financial behaviour and to evaluate how you are likely to handle a future loan. With that in mind, it goes without saying that maintaining a high credit score is very important if you want a personal loan at a low-interest rate. You can go ahead and access your FREE Cedit Score with Fincity instantly! Taking a few steps like paying your EMIs or credit card bills on time, maintain a good balance of secured and unsecured loans and maintaining a low credit utilization can help improve your credit score.
- Pay Your Credit Card Dues: A higher debt indicates a lower repayment capacity and therefore affects your eligibility. Make sure to pay off or at least lower your existing debt so the lender can see you have a substantial amount of funds left for the purpose of loan repayment.
- Add a Co-applicant: If your income or credit score is low, you may want to consider adding a co-applicant for the loan. If the co-applicant has a high credit score and income, it will improve your chances of getting a personal loan.
- Add All Sources of Income: Since a higher income indicates a higher repayment capacity, adding all sources of income such as your salary, rental income and variable pay will improve your chances of availing a good rate on your personal loan.
- Lower your Debt-to-Income Ratio: Low debt with high income makes way for a low debt-to-income ratio. This shows to lenders that your debts are well managed and under control, making you a perfect candidate for an Axis Bank personal loan.
How to Improve Credit Score for Axis Bank Eligibility?
We have already covered how important your credit score is for you to be eligible for a personal loan from Axis Bank. Since your credit score indicates your credit behavior and either encourages or discourages a lender to approve your loan request, it is of high importance that you do everything you can to improve your credit score. When you apply for an Axis Bank personal loan, the bank will go through the Credit Report that lists all your previous and current loans as well as your repayment track record on these loans and your credit cards. Note that Axis Bank requires that a borrower have a minimum credit score of 650 for a personal loan. Here are some ways you can improve your credit score to easily get a personal loan.
Apply with One Lender at a Time: Since every application with a different lender creates a new enquiry for your credit report, bringing down your credit score every time, it is best to first work on improving your credit score, and then apply for a personal loan with one lender at a time. You also don’t want to come across as credit hungry to a lender.
Do Not Default on EMI Payments: When you delay or skip an EMI payment, it shows that you are not disciplined with your finances. A lender wants a borrower who will be responsible in paying back the loan within the decided tenure as per the loan agreement. And most importantly, a default in loan repayment pulls down your credit score, making it harder to get a loan in the future.
Try to Lower Your Debts: High debts take away a significant proportion from your monthly income, decreasing your repayment capacity and of course, your credit score. To a lender, this shows financial stress and indicates that you are at a high risk of defaulting. In this scenario, even if you do get a personal loan, your rate of interest will be high and you may not get approval for a high loan amount.
Balance out the ratio of Secured vs Unsecured Loans: A high number of unsecured loans impacts your credit score and does not motivate a bank to lend you funds.
Maintain a Credit Utilization Ratio of 30% or less: Do not use up all the credit at your disposal. Any kind of negative credit behaviour causes your credit score to drop.
What Documents Do I Need for an Axis Bank Personal Loan?
Here is a general list of documents you need for an Axis Bank Personal Loan.
- Updated application form
- Photograph of the borrower
- Age proof and ID proof
- Income proof
- Bank statement
- Proof of residence
- Signature verification proof
Once you submit all the required documents, the bank will verify all details and either approve or reject your loan application. If the loan is sanctioned, the loan agreement must be signed and the standing instruction request form is to be submitted along with the required security cheques.