CIBIL Score Required for Axis Bank Personal Loan
One can avail personal loans from Axis Bank for your child’s education, dream vacation, wedding, home renovation or for any other personal reasons. Once you have decided to take a loan the next step would be applying for a loan. You need to be above 21 years of age and have a minimum monthly salary as set by the bank and an acceptable CIBIL Score for quick approval.
Features of Axis Bank Personal Loan are:
- The loan is available for salaried individual.
- Loan amount starts from Rs.50,000 and can go up to Rs.15,00,000.
- The repayment tenure ranges from 12 months to 60 months.
- Through the balance transfer facility, one can transfer loans from other banks to Axis Bank to avail better terms.
- There is minimum documentation and a simple procedure for the bank to quickly approve loans.
- You can earn eDGE loyalty points on personal loans.
- Rate of interest is 15.50% p.a. to 24% p.a.. The loan processing charge is 1.50% to 2% plus Service tax.
- There is no pre-payment charge applicable.
- Rs.50 per set along with the service charge is charged for CIBIL Report issuance.
Axis Bank offers personal loans to salaried employees. They must be at least 21 years of age and at the time of loan maturity the maximum age must not exceed 60 years. Minimum monthly income must be Rs.15,000. The maximum loan available is Rs.15 Lakhs.
Axis Bank will take 30 working days from the date of receiving the loan application to take a call on the status of the loan application. All the documents will be checked by the bank and it checks the CIBIL Score of the individual as well. A good CIBIL Score is an important eligibility criteria for sanctioning a loan to an individual. CIBIL is a precise indicator of an individual’s credit history. They take into account factors such as:
- Record of default payments.
- Loans and credit cards the individual currently holds.
- How diligently an individual pays his loan and credit card bills.
- The number of credit card and loan applications submitted by the individual.
- More importance is given towards how diligently the individual repays his unsecured loans.
A good CIBIL Score helps bank determine your creditworthiness and speed up the approval process.
What is CIBIL?
Credit Information Bureau India Ltd. was established in August 2000. It is India’s first Credit Information Company. CIBIL maintains credit records of each particular individual and provides that information to financial institutions and lenders. This helps banks learn about an applicant’s credit history.
What is CIBIL Score?
Every time an individual avails a loan or credit card, the information is shared by the member bank to CIBIL on a monthly basis. This information is used to generate a Credit Information Report which is shared with lenders and other financial institutions. Banks refer to the Credit Information Report to avoid bad loans by lending to borrowers who aren’t credit-worthy.
CIBIL collects and organises an individual’s credit and repayment history and provides this information to member banks. Every time a bank requests a Credit score, CIBIL generates a new control number and gives the individual’s information to the bank.
Alternatively, the applicant can personally check his/her CIBIL Score. The credit score ranges from 300-900.
Factors that affect the credit score
There are positive and negative factors that affect the credit score. The positive factors are:
- Timely payment of loan EMIs.
- Paying credit card dues on time.
- Clearing outstanding balances in full; not just the minimum balance.
The negative factors are:
- Not paying credit card bills.
- Paying only the minimum balance on the credit card.
- Defaulting in paying loan EMIs.
- Maxing out credit cards.
Applicants need to keep check of their credit score regularly. A good credit score is 750 and above. If your credit score is not close to that, then you might want to reconsider applying for a loan. If your loan application gets rejected, this information is also marked in your Credit Information Report.
If you spot an error in the Credit Information Report, it needs to be resolved. It could be any error such as inaccurate current balance, inaccurate amount overdue, inaccurate personal details and ownership and a duplicate account, you need to resolve it so that it doesn’t affect your CIBIL Score.
If your credit scores are bad then;
- Make sure you do not default in making the future payments.
- If you have been applying for too many loans which have been getting rejected too often, then it negatively affects your CIBIL score.
- Do not apply for another loan before you have cleared your current outstanding loans.
If you have no CIBIL Score, banks might not even consider your loan application as they will have no idea how creditworthy you are. It is advisable to have some type of credit to show the banks that you are creditworthy. To do this you can
- Take a secured loan as they are easily provided by lenders.
- Get a credit card and if the application is rejected get one against a fixed deposit. Remember to switch over to a regular card as soon as you can.
- Salaried individuals can get credit cards from banks that their employers have accounts with.
An individual needs to keep in mind that his/her CIBIL score strongly influences a bank’s decision as to whether a loan application is to be approved or not. It influences the interest rate being offered to the individual as well. Defaulted payments and too many loan and credit card applications are taken into account while generating the credit score. Manage your finances and clear out payments on time to ensure you have a good credit score so that your loan application is not being rejected.
