home loan

Are Axis Bank Home Loan Interest Rates Affordable?

Finance

Axis Bank, one of the premier private lenders in India, has tapped into the demand for cheaper home acquisition by lowering its housing loan interest rates constantly. The rates have fallen to as low as 8.35% per annum. Besides, there are separate interest rate offers for salaried and self-employed, making Axis Bank Home Loan accessible to a large mass.

Simply knowing the interest rates, however, shouldn’t be the end of homework. You need to get an idea of the repayment by using the EMI calculator and several other online tools. So everything you wanted to know about Axis Bank Home Loan Interest Rates is explained in this article. Let’s check out the interest rates first before diving into other aspects governing Axis Bank Home Loan.

Axis Bank Home Loan Interest Rates

Axis Bank offers home loans on floating rate, means the debt will get repriced on a specific date based on the market movement. As you know, the bank adopts Marginal Cost of Lending Rate (MCLR) mechanism to price its home loans. It follows a 6-month reset mechanism, which means that your interest rates will get reset on a half-yearly basis.

The 6-month MCLR stands at 8.20%. At the time of application, the interest rates would be benchmarked to the prevailing MCLR. Also, the bank sees the loan amount before charging interest rates.

Axis Bank Home Loan Interest Rates for Salaried

Loan amount of up to 30 lakh will bear an interest rate of 8.35% per annum, 15 basis points higher than the MCLR. On the other hand, the interest rates on a loan amount above 30-75 lakh and above 75 lakh are 8.65% and 8.70%, respectively.

What About Self-employed? How Much Interest Rates They Expect to Get?

The interest rates for self-employed are 5 basis points higher than their salaried counterparts. While a loan of up to 30 lakh comes at 8.40% p.a., the finance of 30-75 lakh and above 75 lakh can be availed at 8.70% and 8.75%, respectively.

Axis Bank Home Loan Interest Rate Calculator

The interest rate calculator is also known as home loan EMI Calculator that gives you a track of the repayment lying ahead. The repayment not only means the EMI or Equated Monthly Installment but even the overall interest outgo likely on a loan. The EMI constitutes a portion of both principal and interest to be paid by a borrower each month till the end of the tenure.

The calculator uses the amount of loan, the rate of interest and the loan tenure to compute the indicative installments as well as the amount of interest to be repaid over the course of the loan tenure. Talking about tenure, it can be a maximum of 30 years for both salaried and self-employed. An example below will give you a brief idea of the calculator.

Example – Shiksha Vaswani, a 40-year old entrepreneur, looks to avail a 20-year home loan of 45 lakh from Axis Bank. Considering her credit score of 800, Axis Bank disburses the loan at 8.70% per annum. The EMI and interest outgo are likely to be 39,624 and 50,09,648, respectively.

Axis Bank Home Loan 12 EMI Offers

If you were ears to the latest developments surrounding Axis Bank Home Loan offers, you must have heard 12 EMI waiver scheme of the private lender. Yes, it’s on. As per the offer, 6 months EMI gets waived off on the completion of 10 years and another 6 EMIs after 15 years of the loan tenure. However, to get the waiver, it is needed to have a clean repayment track. The minimum tenure of the loan given under 12 EMI off offer would be 20 years.

Axis Bank Home Loan Documents

Both salaried and self-employed are supposed to submit the following documents to get their home loan application approved without any hassle. The documents to validate identity & residence proofs for both salaried and self-employed are same. However, documents to validate income are different.

Identity Proof – Voter ID/Aadhaar Card/PAN Card/Passport/Driving License

Residence Proof – Latest Utility Bills/Aadhaar Card/Passport/Driving License/Passport

Income Proof – Salary Slip of Last 3 Months/Latest Form 16/ and Last 6-month Bank Statement of the Salary Account (Salaried)

  • IT Returns and Income Computation of the Last 2 Years, Last 6-month Bank Statement of Both Personal and Business (Self-employed)

 

Vikas Das is one of those expert writers in finance who has enlightened the readers about various banking and investment products like personal loan, home loan, car loan, mutual fund, fixed deposit and others.

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