Falling Short of Money? Don’t Worry, Consider A Personal Loan

Time to read: 5 mins | December 14, 2018

Prudent financial planning, of course, helps you prepare for your financial goals. But at times, despite prudent financial planning you fall short of money – be it for your dream vacation, wedding expenses, festive expenses, home renovation, or even to handle certain medical expenses. 

Here’s where a Personal Loan comes to your aid. You need not exhaust your existing savings/finances built over the years and earmarked for certain financial goals. Instead, opt for a Personal Loan, which serves as an enabler.

A personal loan is granted within 48 hours (sometimes even on the same day) to salaried individuals aged between 21 to 60 years;  

Here are a few benefits of availing a Personal loan:

1. No collateral required –

   A personal loan is an unsecured loan. This means it does not require you to mortgage/pledge any of your existing assets as collateral. However, before granting and disbursing the personal loan, the bank will run a background check to assess your financial stability and ability to repay. With Axis Bank, the minimum net monthly income requirement is Rs 15,000.

   Your personal financial documents are examined carefully, plus your credit report (sourced from credit information companies CIBIL, Experian, Equifax, Highmark, etc.) for your credit score (which reflects your creditworthiness).

2. Requires minimal documentation:

   Compared to other loans, a personal loan requires minimal documentation.

   Typically, the documents required are your age proof, address proof, photo identification proof, salary slip, Form 16, bank statements, Income-tax returns, and qualification proof/registration proof.

   These documents need to be submitted along with a duly filled and signed loan application form and one photograph.

3. Competetive rate of interest –

   Axis Bank offers a personal loan at an attractive rate of interest.

   The interest rate you pay depends upon these following factors: income stability, work experience (in the current job/business/profession and total), your credit score, existing EMIs (if any), your repayment capacity, and loan tenure, among other things.

   If you are young and have a steady source of income with sufficient work experience, a good number of years before retirement, have low or no EMIs, and your credit score is respectable (750 and above), you could be eligible for a personal loan at a very competitive rate of interest.

4. Comfortable loan repayment –

   To ease your burden, you may opt for the EMI (Equated Monthly Instalment) facility. And the tenure of your loan can range anywhere between 12 months to 60 months. 

   You can choose your tenure and the amount that you are comfortable repaying each month (for the chosen tenure). Keep in mind that longer loan tenure reduces your EMI, which makes the loan repayment a comfortable, whereas a lesser tenure increases your EMIs. To know how much the EMI on your personal loan will be, click here.

   You also have the option to make part pre-payments towards your personal loan. Currently, Axis Bank levies no charge for part-prepayments of personal loan.

5. No foreclosure charges –

   Say, you receive a windfall one day or have built a sufficient corpus and wish to foreclose your loan, it is possible. For the foreclosure, all outstanding dues must be cleared and you need to submit a foreclosure request letter to the bank. Currently, Axis Bank levies no charge on the pre-closure of a Personal Loan account.

Axis Bank grants personal loans anywhere between Rs 50,000 to Rs 15 lakh. You can even move your existing high-interest personal loan to Axis Bank.

To conclude:

A personal loan can prove extremely handy and can be utilised for almost any purpose. But ensure you’re borrowing for the right reason(s) and read the fine print carefully for a pleasant and hassle-free experience.

Avail of a Personal Loan from Axis Bank when you need it the most!

Disclaimer: This article has been authored by PersonalFN, a Mumbai based Financial Planning and Mutual Fund research firm. Axis Bank doesn't influence any views of the author in any way. Axis Bank & PersonalFN shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.