Which Bank Personal Loan is Better, SBI or Axis Bank?


  • Whose personal loan will be better for me - SBI or Axis Bank?
  • Know about the features of both these loans so that you could decide better

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.

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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

SBI Personal Loan EMI for Different Loan Amounts and Different Tenures at an interest rate of 14.75% per annum

Loan Amount2 Years3 Years4 Years5 Years
INR 1,00,000INR 4,837INR 3,454INR 2,770INR 2,366
INR 3,00,000INR 14,510INR 10,363INR 8,311INR 7,098
INR 5,00,000INR 24,184INR 17,272INR 13,852INR 11,829
INR 7,00,000INR 33,858INR 24,180INR 19,393INR 16,561
INR 10,00,000INR 48,368INR 34,543INR 27,704INR 23,659
INR 15,00,000INR 72,552INR 51,815INR 41,556INR 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 Amount2 Years3 Years4 Years5 Years
INR 1,00,000INR 4,707INR 3,321INR 2,633INR 2,224
INR 3,00,000INR 14,122INR 9,964INR 7,900INR 6,673
INR 5,00,000INR 23,537INR 16,607INR 13,167INR 11,122
INR 7,00,000INR 32,951INR 23,250INR 18,434INR 15,571
INR 10,00,000INR 47,073INR 33,214INR 26,334INR 22,244
INR 15,00,000INR 70,610INR 49,821INR 39,501INR 33,367

Axis Bank Personal Loan EMI for Different Loan Amounts and Different Tenures at an interest rate of 24 % per annum

Loan Amount2 Years3 Years4 Years5 Years
INR 1,00,000INR 5,287INR 3,923INR 3,260INR 2,877
INR 3,00,000INR 15,861INR 11,770INR 9,781INR 8,630
INR 5,00,000INR 26,436INR 19,616INR 16,301INR 14,384
INR 7,00,000INR 37,010INR 27,463INR 22,821INR 20,138
INR 10,00,000INR 52,871INR 39,233INR 32,602INR 28,768
INR 15,00,000INR 79,307INR 58,849INR 48,903INR 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.

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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!

Personal Loan Interest Rates March 2024
HDFC Bank10.75% - 14.50%
ICICI Bank10.75% - 19.00%
IndusInd Bank10.25% - 26.00%
Kotak Bank10.99%
RBL14.00% - 23.00%
SMFG India Credit12.00% - 24.00%
Standard Chartered Bank11.49%
Tata Capital10.50% - 24.00%
Home Loan Interest Rates March 2024
Axis Bank8.75% - 9.15%
Bank of Baroda8.50% - 10.60%
Citibank8.75% - 9.15%
HDFC8.50% - 9.40%
ICICI Bank9.00% - 9.85%
Indiabulls Housing Finance Limited8.65%
Kotak Bank8.70%
LIC Housing8.50% - 10.50%
Piramal Capital & Housing Finance10.50%
PNB Housing Finance8.50% - 10.95%
Reliance Home Finance8.75% - 14.00%
State Bank of India/SBI9.10% - 9.65%
Tata Capital8.95% - 12.00%