Comparison Between ICICI Bank And Axis Bank Personal Loan

Introduction

The people who fall into the crisis of urgent cash get the breathing space to solve the cash crisis with the help of personal loans. Personal loans also help people to fulfill burdensome financial requirements. Although these imprecise and unsecured sponsorship facilities become a little more expensive than the best-secured loan offers, they are often preferred by the people who generally do not wish to undertake any kind of necessary collateral property to obtain loans against securities like gold, house, mutual fund investments, fixed deposits, endowment plans, cars, etc.

Besides, the customers who are willing to obtain a loan amount that is bigger than the value of their security get relieved with personal loans. Moreover, the customers are granted personal loans also at higher rates if they have a steady income and impressive credit scores. More significantly, most of the personal loans can be applied in a fully contactless manner. This process has started since the growth of the Covid-19 pandemic to maintain social-distancing norms. Personal loans have another advantage in that it generally does not take time for disbursement and also might require zero to minimal documentation if they are pre-approved in nature.

In this perspective, the experts have made a comparison between ICICI Bank and Axis Bank Personal Loan as both these banks are the country's two leading banks from where the millions of people take personal loans.

Axis Bank:

Considering the rate of interest on the loan amount, Axis Bank provides 10.75% to 17.25% for its customers. Axis Bank imposes processing fees of Rs 4999 on the loan amount of Rs 50 thousand to Rs 25 lakh. The customers, taking personal loans from Axis Bank can obtain repayment time of 12 to 60 months and their lowest EMI becomes Rs 2162 per one lakh. The personal loan borrowers from Axis Bank can make part-payments but they have to pay charges of 5% after one month at first to 12^th EMI, 4% after 13^th to 2th EMI, and 3% after 25^th to 36^th EMI and after 36^th EMI part-payment charges become 2%. Then the customers who have taken a personal loan of Rs 10 lakhs and more and wish to make foreclosures of their loans have to pay foreclosure charges also. They are allowed to do that after one month. If they close the loans from their funds after 12 EMIs no foreclosure charge is needed to be paid. Otherwise, 5% charges after 1^st to 12^th EMI, 4% charges after 13^th to 24^th EMI, 3% charges after 25^th to 36^th EMI, and 2% charges after 36^th EMI.

The customers willing to obtain personal loans from Axis Bank need to be between 21 and 60 years old. They must have a minimum monthly income of Rs 25 thousand and they must have working experience of 12 months.

ICICI Bank:

While making a Comparison between ICICI Bank and Axis Bank Personal Loan the experts have brought in features provided by ICICI bank. This bank has set from 10.50% to 22.00% interest rates for its customers on the loan amount Rs 50 thousand and Rs 30 lakhs. ICICI bank imposes up to 2.25% processing fees on the approved loan amount. However, the personal loan borrowers get repayment tenure from 12 to 60 months, the same as they get in the case of Axis bank. The lowest monthly EMI on the loan amount becomes Rs 2149. But the borrowers taking personal loans from ICICI bank are not allowed to make part-payments and in case of foreclosure charges the borrowers will be able to foreclose their personal loans only after six months and they have to pay 5% charges. ICICI bank lends personal loan amount to people aged between 23 and 58 years old. In that case, the borrowers must have a monthly income of Rs 25 thousand and they should have working experience of at least two years while applying for personal loans.

Conclusion:

The Comparison between ICICI Bank and Axis Bank Personal Loan has shown us a couple of interesting features of both the banks in their personal loan approval, respectively. The customers however should be able to evaluate the features, especially the benefits they can obtain from each feature provided by both the banks. If the customers look at the rate of interest against the loan amount then they might choose ICICI Bank which has a basic interest of 10.50% whereas Axis Bank is offering a minimum interest rate of 10.75% against the loan amount. If the customers wish to concentrate on monthly EMIs then also ICICI Bank might be their first choice as the monthly EMI amount at this bank will be Rs 2149 while the borrowers of Axis Bank have to pay Rs 2162 as monthly EMIs. Compared to the maximum amount of personal loan ICICI Bank has set the limit of Rs 30 lakh while Axis Bank offers a maximum loan amount of Rs 25 lakh. Considering the processing fees, charged by both the banks, the borrowers can choose Axis as it has set fixed Rs 4999 while ICICI Bank charges 2.25% of the loan amount. If the loan amount is big then the processing fee will be high. Among other significant features which the borrowers must consider is that they can repay the full loan amount and make foreclosure after only one month at Axis Bank while ICICI bank does not allow its borrowers to repay the full loan amount before six months. Talking about the part-payment system, ICICI bank does not allow a part-payment system while in Axis Bank the borrowers have options to make part-payments. So, comparing the benefits provided by these banks, the personal loan borrowers have both advantages and disadvantages. They have to evaluate each of the features only before choosing the bank to apply for personal loans.