ICICI vs Axis Bank for Personal Loan: Here’s What You Need to Know about Interest, Charges and Eligibility

Last Updated : Feb. 1, 2023, 1:22 p.m.

A personal loan is a way through which you can get some funds from a financial institution for a variety of reasons. Like every other loan, the personal loan comes at a certain interest rate and other charges. Every bank and the financial institution provides a personal loan, but when you have decided to get such a loan, it is necessary to compare all your options.

Among the best personal loan options are ICICI bank and Axis bank. Both have a good history of providing the best services and benefits in the financial sector. But when you have both as an option, which do you choose? For this purpose, a comparison is required between the significant aspects of their loan.

Comparison between ICICI Personal Loan and Axis Bank Personal Loan

From this point onwards, a comparison has been made between the interest rates, charges, and eligibility of personal loans on ICICI and Axis banks. When you avail of a personal loan , these are the most important aspects to consider. As a result, the following information includes the comparison between ICICI personal loan and Axis bank personal loan –

Interest Rates and Charges

Generally, the interest rate of Axis bank personal loan starts from 12% to 21%; however, in special circumstances, it can get reduced to a minimum of 10.25%. With the personal loan from Axis bank, you would also have to consider various other charges, which include the following:

• Pre-payment or part payment charges
• Stamp duty charges
• Generation charge of no dues certificate
• Issuance charge of credit information companies report
• Issuance charge of duplicate amortization schedule
• Issuance charge of duplicate statement
• Penal interes
• Swap charges
• Instrument return charges.

These charges come on a per-set basis with GST and may be liable to change depending on the bank. Compared to Axis bank, the ICICI personal loan has a lower interest rate from 10.75% to 19% per annum. With the interest rate of Axis bank, it is liable to conditions of tenure, but the lowest interest rate of ICICI bank does not come with such conditions. But it comes with the following charges such as:

• EMI bounce charges
• Loan cancellation charges
• Repayment mode swap charges
• Additional interest on late payment
• Pre-payment charges
• Origination or loan processing charges.

Eligibility

Another significant difference between the personal loans of both ICICI and Axis bank comes in their eligibility criteria. The eligibility for ICICI personal loan involves the following:

• Your age should be between 23 years and 58 years of age.
• The net monthly salary needs to be at least Rs. 30,000.
• The total years of employment need to be two years, whereas, for your present employer, you should have been working for at least a year.

With these eligibility criteria, the minimum salary range for ICICI personal loan also depends on the profile, such as your relationship with the bank, the type of employer you work under, etc. There also exists a different eligibility criterion for self-employed people, along with having a different age range, a minimum turnover, minimum profit after tax, existing relationship with the bank, etc.

Comparatively, Axis bank personal loan has a simpler eligibility criterion which includes the following:

• You need to have a minimum age of 21 years and a maximum of 60 years during the maturity period of the loan.
• A net monthly income of a minimum of Rs. 15,000.
• You should be a salaried employee being either a doctor, a government employee of the local body or central government, along with public sector undertakings. You can also be an employee of private and public limited companies.

Features and Benefits of ICICI Personal Loan

Unrestricted fund utilization

Once you get the ICICI personal loan, you cannot use the funds. You can use it for any purpose, for getting an expensive product or paying education fees. No matter what you need, the funds for you can get a loan of up to Rs. 50,00,000. And once the loan has been transferred to your account, you can use it.

Instant loan approval

ICICI bank ascertains that you will get your application approved as soon as possible once it is submitted. The entire process takes seconds, and the financial institution aims to provide you with the best stress-free borrowing experience for ICICI personal loan.

Online services

The entire process of the loan works out online with a few simple clicks. You need to fill in your residential address and a few more details. And with a few steps, your application will be well on its way to approval! Concerning any issues or queries, you can always avail yourself of the 24/7 support provided by ICICI bank.

Flexible and long tenure

With ICICI personal loan, you get one of the most flexible and longest tenures for paying back the borrowed sum. You get between 12 to 72 months to comfortably pack the loan.

Fixed-rate of interest

In ICICI personal loan, the interest rate gathered from the calculation remains for the entire payment period. It does not float or fluctuate during the entire tenure of the loan.

Features and Benefits of Axis Bank Personal Loan

Choose the amount you need

From the Axis bank personal loan, you can choose to have whatever amount of loan you need. It can be anywhere between Rs. 50,000 to Rs. 40 lakhs. And Axis bank sends your loan amount directly to your bank account.

Choose your tenure

The Axis bank also allows you to choose your own tenure. The tenure period for paying back Axis bank personal loan can be between 12 to 60 months.

Get the best rates

The lowest interest rate provided by Axis bank is 10.25% per annum, but this interest rate is only if you have a tenure of 12 months. If you have a tenure of 36 months, you get an interest rate of 12%, from which begins the general interest rate that Axis bank personal loan has.

Transferring existing loans

One of the unique features and benefits of the personal loan from Axis bank is that you can transfer your other existing loans that may be of high interest to Axis bank and pay off the loans together.

Hassle-free loan process

The loan application process for the Axis bank personal loan is simple and fast, with minimal documentation requirements.

Conclusion

Getting your loan from either Axis bank or ICICI bank would be great if your needs align with either bank. But with ICICI bank, the interest rate and amount can be more attractive, especially since you can pay it back for a longer time compared to Axis bank personal loan. However, with ICICI personal loan, the issue could exist with meeting its eligibility criteria and age restrictions. If you meet the requirements of ICICI, then taking its loan could be better compared to the Axis bank personal loan.