Axis Bank’s New Home Loan Product Waives 12 EMIsby Vanshika Kumari Financial Writer
Axis Bank’s new Home Loan product, Shubh Aarambh, helps borrowers save up to 5% on their home loan EMIs. The interest rate of Axis Bank Home Loan for the entire year is fixed at 8.35% over the entire tenure of 20 years. The lender also promises to waive 4 EMIs for all Shubh Aarambh loans up to Rs.30 lakhs every 4th, 8th and 12th year of the home loan. A missed EMI payment can however cease this benefit.
These waivers can substantially makes home loans cheaper. Currently, a borrower can save up to Rs.3.09 lakh if he/she takes a loan of Rs.30 lakh for a term of 20 years. Effectively, the rate that a customer virtually pays is 7.67% considering that the rates are fixed. Although many other competitive banks also provide home loans for up to Rs.30 lakh at 8.35%, it is under the floating interest scheme. Therefore, there is an unquestionable risk of the interest rate mounting over the 20 year period.
Economical housing is likely to be accessible to more and more individuals, rapidly growing in the coming years. And, Axis bank had taken advantage of this statistic and released the Shubh Aarambh loan in an attempt to capture a larger market share in the ‘Affordable Housing’ sector. As of June 2017, home loans made up an enormous 44% of the Rs.1.68 trillion retail portfolio of Axis Bank.
Created on Oct 11th 2017 04:18. Viewed 648 times.