Personal Loan Apply Online

HDFC Personal Loan vs Axis Personal Loan: Understanding the Key Differences and Similarities

HDFC Personal Loan vs Axis Personal Loan: Understanding the Key Differences and Similarities

Last Updated : Feb. 1, 2023, 12:45 p.m.

Axis and HDFC banks are well-known private financial institutions in the country that have a history of providing some of the best loan offers. However, when it comes to personal loans, certain differences make one preferable to the other, depending on your need. To comprehend their differences in personal loans, it is also necessary to understand what personal loans involve.

Personal loans are the money you would have to borrow from a financial institution for various reasons. You can take a personal loan to move expenses, medical bills, wedding expenses, or debt consolidation. But before taking such a loan, it is important for you to understand what both banks offer and which would be a better option for you.

Comparison between Axis Bank Personal Loan and HDFC Bank Personal Loan

Here is a quick comparison between both the loans

Interest Rates & Charges for Personal Loan

The HDFC personal loan interest rate begins from 11% to 21% for salaried individuals, with a loan processing fee of up to Rs. 4,999. However, HDFC bank also charges various pre-payment and post-loan disbursement charges.

For salaried individuals, no pre-payment is permitted in full or part until the repayment of 12 EMIs. But at the same time, pre-payment is only permitted up to 25% of the principal outstanding. Moreover, it is only permitted once in the fiscal year and twice during the tenure of the loan. The variety of post-loan disbursement charges involves the following:

  • Legal or incidental charges
  • Repayment schedule charges
  • Overdue EMI interest
  • Repayment mode change charges of Rs. 500
  • Payment return charges of Rs. 450
  • Rebooking charges of Rs. 1000

The interest rate of Axis bank personal loan is 12% to 21% for personal loan tenures of up to 36 months. However, the Axis bank personal loan involves many charges that comparatively exceed the charges made by the HDFC bank. The charges of Axis bank involve the following:

  • Instrument return charges
  • Swap charges
  • Penal interest
  • Duplicate statement issuance charges
  • Issuance charges of credit information companies repor
  • Generation charges of duplicate amortization schedule
  • Issuance charges of duplicate amortization schedule
  • Stamp duty charges
  • Pre-payment or part payment charges

Eligibility Criteria

The eligibility criteria for HDFC personal loan involve the following:

  • Individuals between the age of 21 to 60 years;
  • You should be an employee of a private limited company, or public sector undertaking, involving either the local bodies, state or central government;
  • You should be earning a monthly net income of a minimum of Rs. 25,000;
  • Individuals working a minimum of a year with their present employer and have an overall experience of at least two years.

The eligibility criteria for Axis bank personal loan involve the following:

  • You need to have a net monthly income of a minimum of Rs. 15,000;
  • You should have a minimum age of 21 years, along with a maximum age of 60 years during the maturity of the Axis bank personal loan;
  • You also must be a salaried employee, including either a salaried doctor, an employee of a private or public limited company, or a government sector employee, including the local and central bodies, or a public sector undertaking.

In the eligibility criterion, the significant difference between the personal loans of both banks is the requirement of net income. If your income is below Rs. 25,000 per month, you can opt for an Axis bank personal loan. Except for this criterion, everything else is similar regarding eligibility for both financial institutions.

Documentation Required for Personal Loan

There exists a similarity between the documentation required for a personal loan either from HDFC bank or Axis bank, but there are a few differences. First, the similarities include the need for identity and address proof along with the application form.

The difference begins with the HDFC personal loan requiring you to have your bank statement for the last three months, the salary slips for the last two months, and the latest Form 16. But the Axis bank personal loan also requires you to have the loan agreement appropriately signed along with the ECS Forms or Standard Instruction (SI) Request.

Benefits of Availing Axis Bank Personal Loan

  • With the Axis bank personal loan, you can choose between the amount of personal loan you want, which may be between Rs. 50,000 to Rs. 40,00,000.
  • One of the significant benefits of getting a personal loan from Axis bank is the assistance that the bank provides you to ascertain that you get all the money you need.
  • You also get a lot of time to pay back your Axis bank personal loan, anywhere between 12 to 60 months.
  • Even though the interest rate begins from 12%, you can also avail of a much lower interest rate at 10.25%.
  • By availing Axis bank personal loan, you can pay back your loan in EMIs. When you pay in installments, you would not have to go through the same amount of financial restraint you may go through by trying to pay off your entire loan at once. Also, with the option of Axis bank, once you start paying them off on time, you can improve your credit history.
  • You can also move your other existing loans with high interest to Axis bank by getting this loan.
  • The entire Axis bank personal loan process is simple and fast, with minimum documentation requirements.

Benefits of Availing HDFC Personal Loan

Like there are many benefits to availing of the Axis bank personal loan, there are also some benefits to availing of the HDFC personal loan. These benefits involve the following:

  • With the HDFC personal loan, you can get financial assistance quickly by checking the eligibility or using the eligibility calculator and filling out the application. And if you are a pre-approved customer of the bank, then you can get your loan in a matter of seconds. Whereas, if you are not pre-approved, you can get the personal loan within four working days after verifying your documentation.
  • The HDFC personal loan offers you insurance for your loan with the assistance of Sarv Suraksha Pro. Some of the significant benefits of securing your loan with insurance is providing a cover to your credit equivalent to the loan’s outstanding amount.
  • The HDFC bank has also simplified the application process by shifting it entirely online. Since the process occurs online, it further ensures you get your loan quickly.

Conclusion

You can apply for personal loans from either of the banks through a simple process. And the process has also been provided by the financial institution themselves. But before you begin applying, you must ascertain which is best for you. Depending upon your choice, you can proceed with either of the banks.

If you choose Axis bank personal loan, you would also have to choose the type of personal loan you want to get, along with the purpose. The HDFC personal loan gets you the loan without choosing the type.

Related Post