CIBIL Score: Axis Bank Personal Loan

Axis Bank, is the third leading private sector bank in India that specialises in an extensive range of new generation financial services customised for Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. Established in the year 1994, it currently boasts of a robust network of 3,779 domestic branches, which includes extension counters, across 2,211 locations in India. Further, it boasts of as many as 12,834 ATMs across the country, as per 2018.

Not solely restricted within India, it enjoys a global presence with 10 foreign branches at Hong Kong, Singapore, Shanghai, Dubai and Colombo. It also has representative offices at Dubai, Sharjah, Abu Dhabi and Dhaka, and a subsidiary branch at London, UK. Its asset value is estimated at INR 6,91,330 crores, as on 31st March 2018, and a record of 15% in Total Assets, 17% in Total Advances and 12% in Total Deposits between FY 2012 – 13 and FY 2017 – 18.

These credentials make securing a personal loan from Axis Bank a wise decision for borrowers. Personal loans are tailor-made to meet their varied financial objectives. A good CIBIL score is one of the determining factors for securing a personal loan. There are certain guidelines that borrowers need to follow to maintain their CIBIL score for Axis Bank Personal Loan.

Importance of CIBIL Score for Axis Bank Personal Loan

The following factors will help you understand why you need to maintain a good CIBIL score for Axis Bank personal loan:

Reflects your credit history and payment behaviour : Your CIBIL score is decided on the basis of various factors like credit history, timeliness of debt payments for existing loans and credit card, frequency of loan applications, number of current loans, etc. It gives Axis Bank a clear idea of your creditworthiness. This helps them assess the probability of retrieving the loan amount within the stipulated time frame, if they approve a personal loan application. The minimum CIBIL score for Axis Bank personal loan, like in the case of most other banks and financial institutions, is 750 for a quick and hassle-free loan approval process. What’s more, with a good CIBIL score, the loan amount is also credited to your registered bank account in a short span of time. The lesser is your CIBIL score, the lower will be your chances of securing an Axis Bank personal loan.

Decides your personal loan amount : A good score in your CIBIL Report creates a positive impression about your credit health and debt repayment habits. This gives Axis Bank a certain degree of assurance of getting back the dues. Your CIBIL score for Axis Bank personal loan also enables the bank to evaluate the loan amount you can be eligible for. A high CIBIL score may also give you the opportunity to negotiate for a higher loan amount. While, on the other hand, you will have to agree to the loan amount being offered to you, if you have a low CIBIL score.

Decides your rate of interest : With a good CIBIL score for Axis Bank personal loan, you may get the scope to negotiate on the interest rate on your loan amount, which would not be the case if you have a low score.

Salient Features of Axis Bank Personal Loan

The following will give you a comprehensive idea about Axis Bank Personal Loans.

Eligible for salaried employees, salaried doctors, employees of public and private limited companies, public and private limited companies, and government sector employees including Public Sector Undertakings and central and local bodies
Offered to those who are at least 21 years of age and not more than 60 years at the time when a personal loan term reaches its maturity
Should have a minimum net monthly income of INR 15,000
Offers a minimum personal loan amount of INR 50,000 to a maximum of INR 15 lakh
Applicable rate of interest varies between 15.75% p.a. and 24% p.a.
No pre-payment charges are applicable
Includes a repayment term ranging from 12 months to 60 months
Inclusive of a transfer facility that enables you to transfer loans from other banks to Axis Bank for being entitled to better terms
Enables hassle-free and speedy personal loan approvals on submission of certain documents
Offers eDGE loyalty points on personal loans.
Includes a loan processing charge varying from 1.50% to 2%, not inclusive of applicable taxes
Issues CIBIL Report on request chargeable at INR 50 per set, not inclusive of service charge

Probable Reasons for Axis Bank Personal Loan Rejection

The following are the most common factors for the rejection of an Axis Bank personal loan:

Inaccurate data in CIBIL Report: It is highly recommended that borrowers check their CIBIL score at regular intervals, especially before applying for a personal loan from Axis Bank. Inaccurate information about payment overdue, current balance, incorrect personal details, etc. may be the reason or one of the primary reasons behind the low CIBIL score, which has led to a personal loan rejection.
Low CIBIL score: If the score is low, despite every data in the report being accurate, here’s what you should do to prevent a loan rejection.
- Ensure that you do not default on future repayments to prevent your CIBIL score from falling further
- Prevent frequent loan applications, despite all the previous ones getting rejected, within a short span of time
- Prevent yourself from applying for a loan when you already have other existing loans under your name
- If your CIBIL score is below 750, rethink your loan application and try deferring it till your score has reached at least the 750 mark. A loan rejection will bring down your score further.

No credit history : A lack of credit history arises when you have never applied for a loan or don’t have a credit card or don’t transact with your credit card. When you don’t have a credit history, it becomes difficult for Axis Bank to analyse your creditworthiness. It makes them sceptical about your repayment behaviour, and therefore, might not consider personal loan applications from individuals with no CIBIL scores. The following can help you build a credit history.
- Take a secured loan as they are easily provided by lenders.
- Use a credit card. In case your credit card application is rejected, get one against a Fixed Deposit. However, make sure that you switch to a regular credit card as soon as possible.
- Opt for a secured loan, which are readily approved.
- Salaried individuals are eligible for credit cards from banks where their employer holds a salary account.

Tips for Improving CIBIL Score to get Axis Bank Personal Loan

You can improve your CIBIL score by following these guidelines:

Avoid using a credit card with a low balance by clearing the entire accumulated due as soon as possible.
Pay the entire amount due against your credit card within the due date rather than paying the minimum amount due. This is because when the remaining balance amount is carried forward to the next month, not only does it attract a high rate of interest, it also adversely affects your CIBIL score.
If you have an existing loan, make sure that you pay the instalments within the pre-determined date to improve your CIBIL Score.
If you feel you might miss the due dates, you can opt for the auto-debit facility or give standing instructions to your bank, so that they can deduct the outstanding amount every month on a certain date, as per your preference. Ensure that you maintain enough balance in your bank account on the decided date as an unsuccessful auto-debit makes you liable for a heavy penalty.
Prevent opting for a personal loan settlement with Axis Bank.
Avoid withdrawing cash against your credit card as it reflects a poor credit habit and cautions future lenders against your current financial stress.
Take a thorough look at your CIBIL report before applying for a personal loan to check for inaccuracies, omissions, repetitions and fraudulent transactions. These may have affected the CIBIL score, which may become the reason behind your personal loan application getting rejected. Raise a CIBIL dispute to get it rectified and then apply for a loan.
Read the loan terms and conditions thoroughly before going ahead, so that you do not take steps that may affect your CIBIL score.

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FAQs on CIBIL Score For Axis Bank

What is the personal loan rate of Axis Bank?

Rate of interest on Axis Bank personal loan varies between 15.75% p.a. and 24% p.a.

What are the eligibility criteria for getting Axis Bank personal loans?

An individual has to belong to one of the following to be eligible for an Axis Bank personal loan:

Salaried employees
Salaried doctors
Employees of public and private limited companies
Public and private limited companies
Government sector employees including Public Sector Undertakings, and central and local bodies
At least 21 years of age
Not more than 60 years at the time of personal loan maturity
Have a minimum net monthly income of INR 15,000

Will Axis Bank give me a personal loan if I have a low CIBIL score?

If you have a low CIBIL score, you should follow these guidelines to improve your CIBIL and then apply for an Axis Bank personal loan:

Avoid using a credit card with a low balance by clearing the entire accumulated due as soon as possible.
Pay the entire amount due against your credit card within the due date rather than paying the minimum amount due. This is because when the remaining balance amount is carried forward to the next month, not only does it attract a high rate of interest, it also adversely affects your CIBIL score.
If you have an existing loan, make sure that you pay the instalments within the pre-determined date to improve your CIBIL Score.
If you feel you might miss the due dates, you can opt for the auto-debit facility or give standing instructions to your bank, so that they can deduct the outstanding amount every month on a certain date, as per your preference. Ensure that you maintain enough balance in your bank account on the decided date as an unsuccessful auto-debit makes you liable for a heavy penalty.
Prevent opting for a personal loan settlement with Axis Bank.
Avoid withdrawing cash against your credit card as it reflects a poor credit habit and cautions future lenders against your current financial stress.
Take a thorough look at your CIBIL report before applying for a personal loan to check for inaccuracies, omissions, repetitions and fraudulent transactions. These may have affected the CIBIL score, which may become the reason behind your personal loan application getting rejected. Raise a CIBIL dispute to get it rectified and then apply for a loan.
Read the loan terms and conditions thoroughly before going ahead, so that you do not take steps that may affect your CIBIL score.

Does skipping Axis Bank personal loan payment affect my CIBIL score?

Yes, missing a personal loan payment within the pre-determined due date is one of the factors that adversely affects CIBIL score.

Will a loan settlement with Axis Bank affect my CIBIL score?

Yes, opting for a personal loan settlement with Axis Bank will affect your CIBIL score.

Can I get more than 3 Axis Bank personal loans if I have a good CIBIL score?

There are no restrictions regarding the number of personal loans that you can apply for at the same time. However, this will raise a red flag for prospective lenders, who will interpret this as your credit hungriness and, thus, reject your personal loan application(s). This will bring down your CIBIL score.

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