Which Bank Personal Loan is Better, SBI or Axis Bank?
Last Updated : April 2, 2020, 5:16 p.m.
A personal loan can be availed by any individual to fulfill their personal needs from banks and financial institutions. But when an individual wants to apply for a personal loan, the most important question in front of him/ her is to choose the suitable option that fits with their requirements and repayment capability. State Bank of India (SBI) and Axis Bank are two large-sized banks having a wide clientele base across different segments including personal loans. Both these banks provide personal loans to customers at an affordable rate of interest.
Choosing from SBI and Axis Bank for personal loans is quite tough for a common individual as both of these banks provide impeccable personal loan facilities. But you don’t need to worry as we will disclose personal loan details of both these banks as well as the factors that you must consider when choosing between the two. As there cannot be a universal best personal loan for each individual, instead it differs from one individual to another based on their requirements. So it may be possible that an Axis Bank personal loan could be better for someone than a SBI personal loan . So you must read this post to understand things in detail.
Factors that You Must Consider while Choosing Between SBI and Axis Bank Personal Loan
If we were to make a list of top lenders providing personal loans in India, both SBI and Axis Bank would’ve been in the top five. It’s a quite tough choice to choose between them, but what you can do is to look at their features closely and decide by yourself as the contest is pretty close. It would be better that you take this decision after understanding everything about them.
So, we are providing you some of the factors that you cannot afford to miss when comparing these two alternatives for your personal loans. Do check them below.
Loan Amount
The first and foremost thing that you must check is the loan amount required for your personal needs. If a lender is not able to fulfill your required amount then it does not matter how amazing the loan facility it has, it will be of no use to you. So always check the loan amount provided by the lender so that you can decide whether it fulfills your needs or not.
With the help of an Axis Bank personal loan, you can take upto a loan amount of maximum of INR 15 lakh provided you fulfill the eligibility criteria. You can opt for a minimum loan amount of INR 50,000.
When it comes to SBI personal loan, the loan amount tends to change according to the applicant’s eligibility. For salaried employees, loan amount ranges from a minimum of INR 24,000 to a maximum of 24 times of your Net Monthly Income, subject to a cap of INR 15 lakh or And for pensioners, the loan amount ranges from INR 25,000 to a maximum of INR 14 lakh.
Rate of Interest
While choosing any personal loan for you, opting for a lower interest rate should be your first priority. If you are wondering why then let us tell you that this directly affects your equated monthly installments (EMIs) payable every month. Higher the interest rates, higher will be your EMI and vice versa. You also need to remember that the rate of interest on any personal loan varies according to several factors such as monthly income, employment type, job history, repayment capability, and most importantly the CIBIL score . So, it can be different for one person as compared to what you will get.
Axis Bank personal loan interest rates range from 12% to 24% per annum and the final rate of interest will be decided by the lender according to factors mentioned above.
On the other hand, SBI personal loan interest rate ranges from 10.35% to 14.75% per annum which is quite affordable given the rates that prevail in the market. You can also see that SBI interest rates are much lower than the rates offered by Axis Bank. So, you can guess by yourself that your EMIs for a SBI personal loan will be lower as compared to EMIs you will pay for an Axis Bank Loan. You can also have a look at the EMI amount for different loan amounts at different periods for both SBI and Axis Personal Loan facilities.
SBI Personal Loan EMI Calculator Details
SBI Personal Loan EMI for Different Loan Amounts and Different Tenures at an interest rate of 10.35% per annum
| Loan Amount | 2 Years | 3 Years | 4 Years | 5 Years |
|---|---|---|---|---|
| INR 1,00,000 | INR 4,631 | INR 3,243 | INR 2,553 | INR 2,142 |
| INR 3,00,000 | INR 13,892 | INR 9,730 | INR 7,659 | INR 6,426 |
| INR 5,00,000 | INR 23,153 | INR 16,216 | INR 12,765 | INR 10,710 |
| INR 7,00,000 | INR 32,415 | INR 22,702 | INR 17,872 | INR 14,994 |
| INR 10,00,000 | INR 46,307 | INR 32,432 | INR 25,531 | INR 21,420 |
| INR 15,00,000 | INR 69,460 | INR 48,648 | INR 38,296 | INR 32,130 |
SBI Personal Loan EMI for Different Loan Amounts and Different Tenures at an interest rate of 14.75% per annum
| Loan Amount | 2 Years | 3 Years | 4 Years | 5 Years |
|---|---|---|---|---|
| INR 1,00,000 | INR 4,837 | INR 3,454 | INR 2,770 | INR 2,366 |
| INR 3,00,000 | INR 14,510 | INR 10,363 | INR 8,311 | INR 7,098 |
| INR 5,00,000 | INR 24,184 | INR 17,272 | INR 13,852 | INR 11,829 |
| INR 7,00,000 | INR 33,858 | INR 24,180 | INR 19,393 | INR 16,561 |
| INR 10,00,000 | INR 48,368 | INR 34,543 | INR 27,704 | INR 23,659 |
| INR 15,00,000 | INR 72,552 | INR 51,815 | INR 41,556 | INR 35,488 |
Axis Bank Personal Loan EMI Calculator Details
Axis Bank Personal Loan EMI for Different Loan Amounts and Different Tenures at an interest rate of 12% per annum
| Loan Amount | 2 Years | 3 Years | 4 Years | 5 Years |
|---|---|---|---|---|
| INR 1,00,000 | INR 4,707 | INR 3,321 | INR 2,633 | INR 2,224 |
| INR 3,00,000 | INR 14,122 | INR 9,964 | INR 7,900 | INR 6,673 |
| INR 5,00,000 | INR 23,537 | INR 16,607 | INR 13,167 | INR 11,122 |
| INR 7,00,000 | INR 32,951 | INR 23,250 | INR 18,434 | INR 15,571 |
| INR 10,00,000 | INR 47,073 | INR 33,214 | INR 26,334 | INR 22,244 |
| INR 15,00,000 | INR 70,610 | INR 49,821 | INR 39,501 | INR 33,367 |
Axis Bank Personal Loan EMI for Different Loan Amounts and Different Tenures at an interest rate of 24 % per annum
| Loan Amount | 2 Years | 3 Years | 4 Years | 5 Years |
|---|---|---|---|---|
| INR 1,00,000 | INR 5,287 | INR 3,923 | INR 3,260 | INR 2,877 |
| INR 3,00,000 | INR 15,861 | INR 11,770 | INR 9,781 | INR 8,630 |
| INR 5,00,000 | INR 26,436 | INR 19,616 | INR 16,301 | INR 14,384 |
| INR 7,00,000 | INR 37,010 | INR 27,463 | INR 22,821 | INR 20,138 |
| INR 10,00,000 | INR 52,871 | INR 39,233 | INR 32,602 | INR 28,768 |
| INR 15,00,000 | INR 79,307 | INR 58,849 | INR 48,903 | INR 43,152 |
So, with the help of these details, you can easily compare the amount that you will have to pay for both Axis and SBI personal loans.
Eligibility Criteria
This factor is one of the most important factors separating these two loans. It is a set of conditions that one individual has to fulfill in order to get a personal loan. As a personal loan is an unsecured loan, lenders check the eligibility of an applicant closely to minimize the credit risk. It contains factors such as age, monthly income, employment type, and other things.
To be eligible for both SBI and Axis personal loan, the minimum age for an applicant must be 21 years. When we talk about the monthly income, the salaried employees must be earning a monthly income of INR 15,000. Other than this, if you want to know about the eligible loan amount you can get, then you can use the personal loan eligibility calculator .
Tenure
When it comes to the tenure of the personal loan, you should check if the repayment period is well within your capacity otherwise you may end up defaulting. Axis Bank provides you the loan amount for a period of 12 to a maximum of 60 months. Same as Axis Bank personal loan, SBI also provides the repayment period of 12 to 60 months with an exception of 84 months of repayment period to defence pensioners who are below 56 years of age.
Processing Fee
When you apply for any kind of personal loans from any lender, they charge you a processing fee that you have to pay at the time of loan application. It is important to know about it beforehand so that you could be ready for it and it doesn’t come as a surprise to you.
Axis Bank charges upto 1.5% of the loan amount as the processing fee, while for SBI personal loan, you will have to pay upto 1% of the total amount. In some cases, it can be nil also depending on the applicant’s relationship with the lender.
Premature closure Charges
At any point of your loan tenure, if you want to prepay the outstanding amount, you can do it on both Axis and SBI personal loan. But the only difference is that Axis Bank does not charge any fee for making the part-prepayment and full prepayment of the loan.
While, when we come to the SBI personal loan, it charges 3% of the outstanding amount as the prepayment charges. Suppose that your outstanding balance is INR 80,000 after 3 years, and you want to prepay this, then you will have to pay INR 2,400 + GST as the prepayment charges.
Other than this, Axis Bank also gives you reward points which you can use for Booking, recharges, Online Shopping and other things. For example, if you opt for a loan amount less than INR 3 lakhs, you will get 150 points. Similarly, if you opt for a loan amount ranging from INR 3 lakh and INR 5 lakh, then you will get 300 Axis Edge Reward Points and 450 Edge Reward Points for opting for a loan amount more than INR 5 lakhs.
So, based on these points, you must have got a better understanding of whose personal loan is better – SBI or Axis Bank. Keep them in mind and choose wisely!