There are two things that you pay in an EMI, one is the principal amount that you have borrowed and the other is the applied interest. Well, the applied interest will be based on the rate and tenure. Axis Bank offers you a personal loan up to INR 40 Lakh at an interest rate starting from 10.99% per annum. This is one of the reasonable rates for a personal loan in the market. But this is not that easy to get. Read this page to know how Axis Bank Personal Loan repayment is determined.

What is the Process of Determining One's Personal Loan Interest Rate?

Your personal information and income details will help the lender compute the interest rate. Check out how these factors decide your rate. 

Age of the Applicant

The maximum age to borrow an Axis Bank Personal Loan is 60 years, so if you are around this age it might be difficult to offer you a lower interest rate. Because you are near retirement years. And at that time one has problems getting a regular income. It means there are chances the EMI payments could be delayed or unpaid. So to assure their security, the lender increases the rate of interest. 

So if you are 21 years or above, there is less scope for retirement and this becomes the reason you can negotiate for a lower rate of interest. As you have more years of regular income.

Income of the Borrower

For an Axis Bank Personal Loan, you need a minimum salary of INR 15,000. If you have this much income, you can borrow money from Axis Bank under this loan product. But you should know the high amount you apply for, the more income will be required to assure its payment. If you fail to meet this criterion, either the rate of interest will be high or the loan request gets declined. 

Previous Record of Repayments

The loan and credit card payments of the applicant help the bank know how well the applicant can manage the payment. If he/she has no record of non-payment or late payment, the bank will offer him a lower rate of interest as the borrower is less likely to ruin his/her spotless record of repayment. 

Use EMI Calculator Axis Bank to Manage your Payment

Now you have known from the above how your rate of interest is determined, so choose a tenure by which you can have a suitable repayment as well. Because a well-planned loan application can get you affordable EMIs and less interest outgo. This happens when you use the Axis Bank Personal Loan EMI Calculator. You can get access to this online tool on your smartphone, laptop, or desktop by visiting the bank’s official website. Go to the personal loan section and select the ‘EMI Calculator’ from the available options. Now insert your loan details like loan amount, interest rate, and the repayment period. When you are done inserting the same, your EMI and total interest are displayed on the screen. Take a look at the example below to see how this works.

Prathmesh requires a lump sum of INR 4 Lakh for his children's higher education. From the online ads, he came across the offer of Axis Bank and visited the bank website to check on it. There he finds the loan amount and interest rate attractive so he decides to go with it. But before applying he uses the Axis Bank Personal Loan EMI Calculator. He inserts the desired loan amount and chooses the tenure as 4 years and an interest rate of 11.25% per annum. As per his inserted details, he gets the EMI of INR 10,387 and a total interest of INR 98,568. The rate of interest is affordable and so is the EMI amount, so he selected these while applying for the loan.