Personal Loan in 2 of great Ind.Banks- HDFC & Axis

Instant Personal Loans are discussed related to 2 of the great private sector Banks of India. We had tried to present an honest review of 2 of the great Indian Private Sector Banks HDFC Bank and Axis Bank. You can compare and choose whichever suits you most.

2 of the Best Personal Loan Providing Banks

HDFC Bank

Overview

HDFC bank is one of the great Private Sector banks in India. Its full form is Housing Development Finance Corporation. Its headquartered are in Maharashtra Mumbai.

It deals in various financial services. It is India’s largest Private Sector Bank by market capitalization and from an assets side point of view.


In addition to Personal Loan, HDFC Bank provides lots of services like Business Loan, Car Loan, Health Insurance, Credit Cards, and other financial services to various stakeholders.

What is Personal Loan?

A personal loan is a financial help that can help you to avail funds for multiple purposes.

Like other kinds of loans, in personal loans to you are given a specific amount at a specific amount of charges (it can be interest charges/ interest charges+few other charges) and you have to repay it in a specific amount of duration chosen by you. But a Personal loan has some other benefits also.

  • In most cases, Personal Loan has unrestricted use. And it is an aid when you need the number of funds in lump-sum for any personal needs like marriage, emergency, home renovation, lifestyle needs, or even to consolidate your existing loan.
  • In a Personal loan, there is no need for collateral security. This means your assets will not be locked unless in case of a car loan or home loan.

Amount of Personal Loan and Tenure in HDFC Bank

The personal loan amount depends on the type as which type of Personal Loan you are taking.

For Example, In COVID Personal Loan the loan amount is up to Rs. 5 Lakhs which will be an unsecured loan given to you.

In most of the above cases, the personal loan amount at present is Rs. 50 thousand to Rs. 4 lakhs. The amount of loan may or may not depend on various other factors.


There is a flexible tenure of 12 months to 60 months. You can any tenure for repayments of your personal loan between 12 months to 60 months.

CIBIL Score

What is the meaning of CIBIL Score?

CIBIL Score is also known as credit score. It is like the financial report card. In simple words, it is the numerical representation of your payment history.

What are the Important things to know about the CIBIL Score?

Mostly the CIBIL Score comes in the Range of 300 to 900. Anything more than 700 can be said an ideal CIBIL Score for approval of loans and credit cards.


A higher CIBIL Score indicates good credit history and indicates a better reputation from a credit point of view. which can be helpful in approving any kind of loan.


Similar Post:- You can also read business loans in HDFC and Axis Bank by clicking here

Benefits of Personal loan from HDFC Bank

  1. In addition to Personal Loan, you will get Personal Accidental cover Insurance, personal loan security, personal loan for every need. it means you take this personal loan for any personal need. Their customer support is excellent. you will get 24*7 customer support.
  1. Personal Accidental Cover Insurance for a nominal premium is up to 8 lakhs and for critical illness, the cover is of up to Rs. 1 lakhs. The Insurance Premium amount from these policies is deducted from the loan amount after disbursal. Surcharge and taxes are charged extra.
  1. The loan will be given to you instantly as per HDFC Bank it will take hardly a few seconds in approving your loan from the application if you are a pre-approved customer of HDFC Bank. If you have a bank account in HDFC Bank then it will give you an instant personal loan.
  1. if you are not a customer of the HDFC Bank, it means if you have your bank account in some other bank or you don’t have a bank account at all, it will take only 4 hours (approximately) for your loan approval.

Eligibility Criteria for applying for a loan with HDFC Bank.

  1. You must not be unemployed. You must be either be an employee in the private sector or in the government sector or you can also be self-employed. It simply means you must have some source of income.
  1. If you are a salaried person, must have 2 years experience of in your job and at least you have a 1-year of experience where you are employed currently i.e with your current employer.
  1. Your age must be in between 21 years to 60 years. It means your minimum age must be of 21 years and your maximum age should not be more than 60 years.
  1. If you have a salaried account in HDFC Bank then your minimum salary must be at least 25,000 per month and if you have a salaried account other than HDFC Bank or do not have a bank account at all. then your minimum salary must be at least 50,000 per month.

Documents required for HDFC Bank Personal Loan

Your Identity Proof/Age Proof. You may provide your Aadhar card, PAN Card, Driving License, Voter Identity Card, Passport (any one of them).


Your Residential Proof. You may provide your Aadhar card, PAN Card, Driving License, Voter Identity Card, Passport (any one of them).


Bank will also require your Bank Statement for the last 3 months if you have a bank account in HDFC Bank and for the 6 months if you don’t have a bank account in HDFC Bank. this is a mandatory requirement.


If you don’t have Bank Statement or can’t be able to arrange it or provide it for any reason then you may also provide Bank Passbook self-attest photocopy details of the last 6 months.


You must also give 2 months’ latest salary slips.

Various types of personal loans of HDFC

  • Marriage Loan
  • Emergency Loan
  • Personal Loan for Students
  • Personal Loan for Teachers
  • Personal Loan for Women
  • Personal Loan for Salaried
  • Personal Loan for Government Employees
  • Personal Loan for COVID
  • Debt consolidation loan
  • Home Renovation Loan
  • Travel Loan

Interest charges and other expenses (Costs of HDFC Personal Loan)

The primary cost of HDFC Personal Loan is interest charges, loan processing charges, Pre-Payment/Part-Payment Charges, and little bit other charges. But still, even the total of all these charges is not so high if you need a personal loan.


Interest charges however do change from time to time but at present, the interest charges of HDFC Bank are 10.50% to 20.40% for salaried people.


Loan Processing Charges are 2.50% of the loan amount with a condition of minimum loan charges of Rs. 1999/- subject to a maximum of Rs. 25,000.
Prepayment in Part of in full is not allowed until 12 EMI’s are paid by the borrower in case of Salaried employees.


Part-payment is allowed up to 25% of the balance principal amount available. You can pay your loan in parts only 1 time in a year and 2 times in your whole loan tenure.


There are also prepayment and part payment charges amount to 2% or 3% or 4% as per your prepayment or part payment charges.
Overdue EMI interest is also charged which amounts to 24% per annum of EMI or principal overdue.


Cheque Swapping charges are Rs. 500/-, cheque bounce charges as Rs. 550/- and Amortization charges as Rs. 200/-.


For more Information Please visit at HDFC Bank Official Website page of Interest and other charges by clicking here

Axis Bank

Overview

Axis Bank is the third-largest private sector Bank in India. Its website is operated from the United Kingdom.

Its headquarter is also in Maharashtra Mumbai.

Various Large Sized companies, mid-sized companies, SME’s as well as retails businesses are its clients. It gives Various types of Personal Loans, Business Loans, Car Loans, Home Loans, etc.

In this article, we will discuss the Personal Loans given by Axis Bank.

Amount of Personal Loan and Tenure in Axis Bank

  • The amount of Personal Loan in Axis bank is Rs. 50 thousand to Rs. 15 lakhs.
  • The tenure in axis bank is 12 months to 60 months. This is the same as in the case of HDFC Bank. Here also you can choose the repayment period as per your wishes between 12 months to 60 months.

Eligibility Criteria for applying for a loan with Axis Bank.

  1. You must not be unemployed. You must be either be an employee in the private sector or in the government sector or in the local body. It means that you must have some source of income with you you can repay your loan.
  1. Your age must be in between 21 years to 60 years. It means your minimum age must be of 21 years and your maximum age should not be more than 60 years.
  1. If you have a salaried account in Axis Bank then you may be elegible for Axis Bank Loan at Comparative far less interest charges as compared to those who don’t have and account in the Axis Bank.
  1. You must have at least a salary of Rs.15000 per month to be eligible for an Axis Bank loan.
  1. If your CIBIL Score is below 500 then you are not eligible for Axis Bank Loan.
  1. For a loan at attractive interest rates and/or more amount of loan your CIBIL Score should be higher. However if your credit score is below 750 then you may or may not be eligible for attractive interest rates.
One of the Best Personal Loan Providing Bank

How much Personal Loan I can attain if my Salary is 15000?

One of the big benefits of an Axis Bank loan is you can get an Axis Bank loan if your salary is Rs.15000.

But now the question is how much axis bank will give it to me? As discussed earlier.

Axis Bank offers loans for personal purposes between Rs. 50000 and Rs. 15 lakhs.
But the loan amount you will get may depend on various factors such as your CIBIL Score, your duration of the job, your bank account number (as if your bank account is in Axis Bank you may get a higher amount of loan at lower rates and if your bank account is not in Axis Bank then you may not get that much higher amount), your debt-income ration and other similar factors.

Documents required for Personal Loan in Axis Bank

Your Identity Proof/Age Proof. You may provide your Aadhar card, PAN Card, Driving License, Voter Identity Card, Passport (any one of them).
Your Residential Proof/ Nationality Proof. You may provide your Aadhar card, PAN Card, Driving License, Voter Identity Card, Passport (any one of them).
Document in which you have to declare that you are working at present and not unemployed.
Filled Loan application form.

Personal Loan and Tax in case of Axis Bank

As Personal Loan is not your Part of Earned income. you are not paying any taxes on your personal loan. as you are not paying any taxes you are also not eligible for any kind of rebate on loan for personal purposes unlike home loans and some secured business loans.

When Personal Loan should be taken?

When you are in dire need of funds or you are in an emergency you may or may not take the help of a loan. A personal loan is an unsecured loan and it can be used for almost any purpose without restrictions. The most important thing is there is no collateral needed.

Interest Charges and Other Charges in Axis Bank

Interest rates for Personal Loans with tenures of up to 36 month.

Fixed-Rate Loan1 Yr MCLRSpread over 1 year MCLREffective ROIReset
Personal Loan7.35%4.65%-13.65%12% to 21%No Reset
Data is Taken from the Axis Bank Website as of 30 July 2021

Schedule of charges**

Repayment instruction / Instrument return chargesRs.339/- per instance of dishonor of cheque /SI/ECS/NACH debit instruction + GST as applicable
Swap charges (Cheque/Instrument)Rs.500/- per instance + GST as applicable
Penal Interest@ 24% per annum i.e. 2% per month on the overdue installment.
Duplicate statement issuance chargesRs.250/- per instance per set + GST as applicable.
Duplicate Amortization schedule issuance chargesRs.250/- per instance per set + GST as applicable.
Credit Information Companies (CICs) Report Issuance ChargesRs. 50/- per instance per set + GST as applicable.
No Dues Certificate generation charges (Duplicate)Rs.50 per instance per set + GST as applicable.
Stamp Duty ChargesAs per State Stamp Act
Foreclosure/ Part Prepayment ChargesForeclosure charged on loan outstanding, pre-payment charged on the amount of part payment
5% for 0 to 12 months
4% for 13 to 24 months
3% for 25 to 36 months
2% for greater than 36 months
Data is Taken from the Axis Bank Website as of 30 July 2021

**(Subject to change as per Bank’s discretion from time to time)
** Goods and Services Tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable)

Interest rate and schedule of charges for personal loans with tenure more than 36 months

Rate of Interest12% to 21%
Repayment instruction / Instrument return chargesRs.339/- per instance of dishonor of cheque /SI/ECS/NACH debit instruction + GST as applicable
Swap charges (Cheque/Instrument)Rs.500/- per instance + GST as applicable
Penal Interest@ 24% per annum i.e. 2% per month on the overdue installment.
Duplicate statement issuance chargesRs.250/- per instance per set + GST as applicable.
Duplicate Amortization schedule issuance chargesRs.250/- per instance per set + GST as applicable.
Credit Information Companies (CICs) Report Issuance ChargesRs. 50/- per instance per set + GST as applicable.
No Dues Certificate generation charges (Duplicate)Rs.50 per instance per set + GST as applicable.
Stamp Duty ChargesAs per State Stamp Act
Foreclosure/ Part Prepayment ChargesForeclosure charged on loan outstanding, pre-payment charged on the amount of part payment
5% for 0 to 12 months
4% for 13 to 24 months
3% for 25 to 36 months
2% for greater than 36 months
Data is Taken from the Axis Bank Website as of 30 July 2021

**(Subject to change as per Bank’s discretion from time to time)
** Goods and Services Tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable)
For further details, please click here for the Interest rate and schedule of charges for personal loans with a tenure of more than 36 months 

We had present the reviews of both the websites for personal loan purposes. you can choose any of the banks as per your wishes.

Important Note

  • We had taken the helps of The Great HDFC as well as The Great Axis Bank Official websites for writing this post. So the credit of this post goes to HDFC Bank and Axis Bank.
  • We had added the company logo and Interest and other charges table from their websites for Review and Discussion Purposes and in good faith. If the company owners object to it. They can contact us. We will remove it within 48 hours. The Credit of the Logo is going to HDFC Bank and Axis Bank.

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