Axis Bank is one of the leading private banks of India that helps individuals in availing of the desired loan amount at affordable interest rates for a fixed tenure. This facility is known as the Personal Loan. The important thing is that individuals don’t have to pledge any kind of security to get the desired loan amount. And that’s why it is very important to choose the Axis Bank Personal Loan Interest Rates very carefully as this is the main factor that will define your repayment amount.
In this article, we will be telling you about how do interest rates affect your repayment amount and what are those factors that you must look at while choosing the interest rates for your Axis Bank personal loan. When opting for a personal loan, every individual wants to have as low-interest rates as possible on their loan facility so that they can repay the loan amount easily. Higher interest rates mean you will have to pay a higher EMI amount and vice versa. Affordable Axis Bank personal loan interest rates help you in keeping your EMI amount within your repayment capacity. Keep reading to know more! Factors that affect your Axis Bank Personal Loan Interest Rates There are so many factors that decide your Axis Bank Personal Loan Interest Rates. As this is an unsecured loan means you don’t have to pledge any kind of security or collateral against the loan amount. Because of this, lenders face a much higher credit risk. To minimize this risk, lenders check a few factors to decide your personal loan interest rates. These factors are your age, monthly income, employment type, job history, job reputation, resident city, and most importantly, your credit score. Axis Bank will check these factors one by one and then, decide your personal loan interest rates. Like, individual A has a higher monthly income than individual B. So, automatically A has a much higher repayment capacity than B, and hence, A could get a higher personal loan amount than B at lower interest rates. But this is not the only factor that will determine your personal loan interest rates. Among all the factors, your credit score holds the most importance as it tells everything about the repayment history of an individual. People with a high credit score are more likely to get lower Axis Bank Personal Loan interest rates ranging from 15.50% to 24% per annum. Impact of Axis Bank Personal Loan Interest Rates on your EMI Amount When you opt for a personal loan, you need to repay the loan amount within a fixed tenure via Equated Monthly Installments (EMIs). This EMI amount is generally made up of a portion of principal amount and interest amount. So, the higher the interest rates, the higher would be the EMI amount. This is the reason people always look for lower interest rates. Let’s understand this through an example. Suppose an individual wants to opt for a loan amount of INR 5 lakh for a period of 4 years. Here we are taking two different Personal Loan Interest Rates (16% and 20% per annum) to understand the impact on EMI amount. On taking the interest rates of 16% per annum, the EMI amount would be INR 14,170 and interest outgo will be INR 1,80,167. Whereas on taking the interest rates of 20% per annum, the EMI amount would be INR 15,215, and interest outgo will be INR 2,30,329. So, you can clearly see the difference of INR 1,045 in both the EMI amounts on choosing the higher interest rates. That’s how your personal loan interest rates affect your EMI amount. This calculation can be done by the Axis Bank Personal Loan EMI Calculator.
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Anika Sharma
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