Any individual can obtain a personal loan from a bank or financial organization to meet their requirements. However, when a person wants to apply for a personal loan, the most crucial question facing him or her is which alternative is most suited to their needs and repayment capacity. State Bank of India (SBI) and Axis Bank are two significant banks with a diverse customer base in several categories, including personal loans. Customers may get personal loans from both of these institutions at a low-interest rate.
A regular person would find it difficult to choose between SBI and Axis Bank for personal loans because both of these institutions offer excellent personal loan services. But don’t worry; we’ll provide personal loan information from each of these institutions, as well as the criteria to consider when deciding between the two. Because there is no such thing as a universal best personal loan for everyone, it varies from person to person depending on their needs. As a result, an Axis Bank personal loan may be preferable to an SBI personal loan for some people. As a result, you must read this post to fully comprehend the situation.
Consider These Factors When Choosing Between SBI and Axis Bank Personal Loans
Both SBI and Axis Bank would be in the top five lenders offering personal loans in India if we were to construct a list. It’s difficult to select between them, but you may examine their characteristics thoroughly and make your own decision, as the competition is tight. It would be preferable if you made this selection after learning everything there is to know about them.
So, while comparing these two options for personal loans, we’re going to show you some of the things you can’t afford to overlook. Please have a look at the list below.
Amount of the loan
The first and most important thing you should do is figure out how much money you’ll need for your requirements. If a lender is unable to provide the amount you demand, no matter how fantastic their lending facility is, it will be of no value to you. As a result, carefully examine the loan amount supplied by the lender to see whether it meets your requirements.
You may borrow up to INR 15 lakh with the aid of an Axis Bank personal loan if you meet the qualifying conditions. A minimum loan amount of INR 50,000 is available.
When it comes to SBI personal loans, the loan amount varies based on the applicant’s qualifications. For salaried personnel, the loan amount varies from INR 24,000 to 24 times your Net Monthly Income, with a limit of INR 15 lakh or more. The loan amount for retirees goes from INR 25,000 to a maximum of INR 14 lakh.
If you’re looking for a personal loan, the lowest interest rate should be your first priority. The greater the interest rate, the higher the EMI, and vice versa. The interest rates given by SBI are significantly lower than those offered by Axis Bank. You may probably assume that your SBI personal loan EMIs will be smaller than the EMIs you’ll pay on an Axis Bank loan.
Criteria for Eligibility
This is one of the most significant differences between these two loans. It is a collection of requirements that must be met in order to obtain a personal loan. Because a personal loan is an unsecured loan, lenders scrutinise an applicant’s eligibility to reduce credit risk. Age, monthly income, kind of job, and other criteria are included.
An applicant must be 21 years old to be eligible for a personal loan from both SBI and Axis. When it comes to monthly earnings, salaried personnel must earn at least INR 15,000 every month. Aside from that, you may use the personal loan eligibility calculator to figure out how much money you’re qualified for.
When it comes to the personal loan’s term, you should make sure that the repayment time is well within your means, or you risk defaulting. The loan amount is provided by Axis Bank for a period of 12 to 60 months. SBI, like Axis Bank, offers a 12-to-60-month payback period, with an exemption of 84 months for defence retirees under 56 years of age.
To get a better personal loan deal, you should evaluate private and public sector bank loan offers. When comparing deals, you’ll notice two big names: State Bank of India and Axis Bank. If you wish to take out a personal loan from one of the two banks, evaluate the interest rates, loan amounts available, and repayment terms.