When you have a sudden expense and you don’t know where to go for money, a personal loan is usually the best option. Axis bank is one of India’s best private banks when it comes to interest rates and repayment. But before jumping in you have to know about the personal loan amount for Axis Bank.
At TechsFusion we want to make it easy for you to apply with 100% confident. So let’s check out the specifics and key details of your loan approval.
Core Eligibility Criteria for Axis Bank Personal Loans
Before you fill out the forms you need to know who Axis bank qualifies for this credit. The bank classify the applicants in two category, salaried employees and self-employed.
Each group has a different risk, so the approval amount is different. To save time and avoid getting rejected on your credit record, going to match your financial profile with Axis Bank’s standards.
Below we break down these prerequisites for salary and self employed.
Requirements for Salaried Employees
If you’re a salary person whether it is a multinational company, public sector, or a good private limited company, the salary is the key.
Axis bank will ask that you be:
- At least 21 years old to apply.
- With a maximum age of 60 years when you borrow money.
And your monthly income must be more than 15000 to start. The income varies from city to city like Mumbai, Delhi.
Besides, you need to demonstrate stability in your career:
- At least one year of employment.
- At least few months in your current company.
Demonstrating that you have a stable income reassures the lender that you have the money to pay your monthly Equated Monthly Installments (EMIs).
Requirements for Self-Employ
For self-employed people like doctors, chartered accountants, engineers and business owners the criteria are a bit different.
Axis Bank look at how stable your business is and how much money you make a year not on your paycheck.
To qualify you have to:
- Be self-employed.
- Be over 21 and under 65 years of age.
In terms of money, the bank looks for a steady business.
You must have been in the same business for at least two or three years.
Axis bank usually check your income on your audited books. They will see that your net income or profit after tax is greater than 2.5 lakh to 5 lakh depending on your profession.
Providing clear proof of paying taxes on your income through your ITR is what will get you approved for this category.
Key Points That Determine Your Loan Approval
Meeting the basic criteria is just the first step. When Axis bank reviews your application, Axis bank also has some factors when they review your application to decide not only if they approve or not, but also the interest rate.
Credit Score (CIBIL Score)
First and foremost is your Credit Score (CIBIL score).
We always emphasize at TechsFusion that a high CIBIL score is your golden ticket.
Ideally you want your score to be:
- Over 750.
A high score shows Axis Bank that you are a good paying customer and are not going to miss any payments.
Debt-to-Income (DTI) Ratio
Another important thing to consider is your Debt-to-Income (DTI) ratio.
This is what determines how much of your monthly income goes to pay bills such as:
- Credit cards.
- Existing loans.
- Other repayment obligations.
If you have more than 45% of your earnings going into repayments, Axis bank is going to see you as over leverage and you will not get the loan.
Employer Reputation
Finally, your employer’s reputation plays a role.
If you work for a tier-1 or blue chip company, the bank sees your job security high so they will approve you faster and even lower your interest rate.
Essential Documents for a Hassle-Free Application
Applying for a personal loan can get messy if you do not have your paperwork.
To get a smooth and hassle-free application in Axis Bank, having them ready expedites verification and prevents going back and forth.
Documents Required for Salaried Applicants
You will need:
- Proof of Identity: PAN Card (mandatory), Aadhaar Card, Passport, or Voter ID.
- Proof of Address: Bills, Rent agreement, or Aadhaar Card.
- Income Proof: Salary slip for the last three months and Form 16.
- Bank Statement: Statement of your salary account for the last six months.
Documents Required for Self-Employed Applicants
The checklist is:
- Proof of Identity and Address: Same as salaried individuals.
- Income Proof: ITR for the last two years and calculation of income, balance sheet and P&L account by a CA.
- Business Proof: GST registration, trade license, or partnership deed.
- Bank Statements: Statements for office/business account for the last six months.
Proven Tips to Improve Your Chances of Getting Approved
If you feel that your profile is a little short of what the bank is looking for don’t give up.
There are some things you can do to increase your chances of getting a large amount of money with a personal loan from Axis Bank.
1. Improve Your Credit Score
First, work on your credit score.
You can do this by:
- Paying off credit cards.
- Paying every single EMI on time.
- Not applying for multiple loans at once because that’ll trigger hard inquiries.
2. Apply With a Co-Applicant
Second, apply with co-applicant.
If your spouse or parent have a stable income and good credit score, they can be your co-borrower, and your lender will be riskier and will give you more money.
3. Reduce Your Existing Debt
Third, pay off those small loans or credit card debt to lower your DTI ratio before applying.
This gives you extra money to spend in the eyes of the bank’s algorithm.
4. Request a Realistic Loan Amount
Finanly, request your loan amount realisticly.
If you ask for your loan amount that is conveniently payable, your loan will be appoved in minutes.
Conclusion
Securing a personal loan from Axis Bank can easily fill your gaps if you prepare yourself.
By understanding the core requirements to be approved, by having good credit and being organized before you apply, you will be approved in no time.
For more simple tips and information on the best credit products in India, check out TechsFusion.
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