Axis bank Personal Loan

More about Personal Loans
What is a personal loan?
A personal loan is a financial instrument that helps you avail funds for a multitude of uses. Like any regular loan; when opting for a Personal Loan you are advanced a specific amount of funds at a set interest rate and can clear it via a fixed repayment tenure. However, a few aspects of a personal loan may prove more advantageous than other loans lie such as:

It does not lock in any of the applicant’s assets. As opposed to a Home or Car Loan which locks in the asset against which the loan is sought; Personal Loans provide advances for your needs without any collateral.
Unrestricted usage: much like the name states. A personal loan is to be availed in case one needs a financial lump-sum for any personal use. Be it due to a medical/social event, lifestyle needs such as home repairs/renovation, or even to consolidate existing loans.

What are the documents required to apply for personal loan?
As it offers a collateral free advance, application for a personal loan generally involves ascertaining the applicant’s need/eligibility of funds and their repayment capacity. As such to be eligible for a Personal Loan applicants must generally be salaried individuals and share documents confirming their personal and professional details. Including but not restricted to:

KYC Documents (proof of the applicant’s age, nationality, etc.)
Documents declaring the continued employment for the applicant
A duly filled loan application form.
Alternatively if you are an existing Axis Bank customer you can check login to check out pre-approved offers on personal loans with Axis bank 24×7 personal loans here.

What is the minimum CIBIL score required to avail personal loan?
A credit score is a number between 300 and 900 assigned to you by credit bureaus (such as CIBIL). The higher the score, the better are the chances of your loan application (be it for any kind of loan including but not restricted to personal loans) getting approved. If you have a high credit score you may also get a higher loan amount or lower loan rates. However, a score below 750 may reduce your chance of getting a personal loan or grant you a lower amount or a higher interest rate. If your score is below 600 it is advisable to try and find out why your credit score is low. It could be due to past behaviour, such as consistently missing or delaying past EMIs, excessive purchases made on credit, or applied for loans or credit cards with many banks, etc.

Does a personal loan offer tax benefits?
No, as personal loans are not a part of one’s income they are not eligible for tax being charged on the disbursed amount. In turn they are also not eligible for any rebate on taxes as may be the case for Home Loans and some Secured Business Loans

When should one take a personal loan?
A personal loan is the best option if you need funds for an urgent need or a short period. It can be availed for any purpose. Since it is an unsecured loan, the lender approves the loan basis the applicant’s details such as age, income, existing liabilities, and credit score, among others. No time is spent in the assessment of the collateral unlike in case of a secured loan such as gold loan or loan against securities or loan against property. There could be different types or kinds of personal loans depending on the end-use. But usually, a personal loan is of only one type and it can be availed of for any kind of requirement.

What can a personal loan be used for?
A personal loan is an unsecured loan with no restriction on the end-use. The purpose of the loan can be either consumption or productive use. For instance, you could borrow a loan for buying a high-end home theatre system, for a medical emergency if your health insurance falls short, for a foreign holiday with your family, etc. If you are an entrepreneur a personal loan can come in handy for expanding your business, such as adding more inventory or making the down payment for new office premises, etc.

Is a personal loan available for a holiday or travel purposes?
If you dream of travelling the world and visiting exotic locations, you can avail of a Holiday Loan from Axis Bank. It offers amounts ranging from Rs 50,000 to Rs 50 lakh, for tenures ranging from one to five years. It offers a two-month moratorium facility where no EMI is charged. The EMI starts from the third month without extending the tenure. It also comes with a complimentary forex card.

Is a private function, such as a wedding reception, eligible for a personal loan?
A wedding is a once-in-a-lifetime event and everyone wants it to be memorable. If you are falling short of funds to celebrate your wedding, you can apply for personal loan to make up for the deficit.

Should one show hospital bills when taking a personal loan for a medical emergency?
Surgery or prolonged hospitalisation could set you back by a few lakhs, given the rising medical costs. If you need additional funds despite having a health cover, you can easily borrow a personal loan. There is no need to produce any medical reports or hospital bills for the same.

Can personal loans be used for a commercial purpose such as buying raw material for a business?
If you have exhausted your term loan limits allowed by your bank but still need funds for your business, you can apply for personal loan. The loan will be sanctioned based on your individual credit history but can be used for your business.