Axis Bank Personal Loan: Sometimes life throws sudden expenses at us. It could be your sister’s wedding, a hospital bill that can’t wait, or maybe you just want to renovate your old house. In such moments, arranging funds quickly becomes a headache. That’s where a personal loan feels like a lifeline. Axis Bank is one of those banks many people trust. But the first doubt always remains the same if I take ₹2 lakh as a loan, how much will I pay every month? And what about the extra charges like processing fee? Let’s talk in a simple way, without complicated words.
Interest Rate and Loan Duration
Axis Bank personal loan generally starts at an interest rate of around 10.25% per year. The rate depends on your credit score, salary, and other things. You can choose to repay in 1 year to 5 years. The shorter the time, the higher the EMI. The longer you stretch it, the smaller the EMI but the bigger the overall cost. Imagine you borrow ₹2 lakh. Now let’s see the difference when you choose 3 years or 5 years as your repayment time.
EMI Calculation on ₹2 Lakh
Here is a simple calculation to show how much you would pay every month:
| Loan Amount | Tenure | Interest Rate | EMI per Month | Total Interest | Total Payment |
| ₹2,00,000 | 3 years (36 months) | 10.25% | ₹6,479 | ₹33,244 | ₹2,33,244 |
| ₹2,00,000 | 5 years (60 months) | 10.25% | ₹4,274 | ₹56,440 | ₹2,56,440 |
Now look at this carefully. If you clear the loan in 3 years, you finish quickly and pay less total interest. But your monthly EMI will be a bit heavy. If you go for 5 years, the EMI feels lighter on your pocket, but in the end, you pay almost double the interest. It’s like choosing between short-term pain or long-term cost.
Processing Fee
Banks also charge a small fee for giving you the loan. Axis Bank takes around 1.5% to 2% of the total loan amount. For a ₹2 lakh loan, this comes to about ₹3,000 to ₹4,000. This amount is cut right when the loan is given, so the money that actually comes into your account will be slightly less than ₹2 lakh. Many people get surprised by this, so it’s better to know in advance.
A Real Example
Take the case of Meena, a working woman from Delhi. She needed money for her mother’s surgery and applied for a ₹2 lakh loan. She chose a 3-year plan. Every month, ₹6,479 goes from her salary. At first, it felt like a lot, but when she compared it with the relief of arranging funds on time, it was worth it. That’s the real value of such loans peace of mind when your family needs you the most.
Conclusion
If you are planning to take a ₹2 lakh personal loan from Axis Bank, be ready for an EMI of around ₹6,479 if you pick 3 years or about ₹4,274 if you choose 5 years. Along with this, keep in mind the processing fee of roughly ₹3,000 to ₹4,000. A shorter tenure saves you money on interest but needs stronger monthly budgeting. A longer tenure makes monthly life easier but increases the total cost. The right choice depends on your comfort and financial discipline.
Disclaimer
This article is only for general knowledge and educational purpose. Interest rates, fees, and EMI may change depending on your profile and Axis Bank’s current rules. Please confirm all details with the bank before taking any final decision.
