Axis Bank Home Loan: Exploring the Opportunities for It

Axis Bank Home Loan: Home loans are one of the most popular and affordable financial services in India. If you have been looking for a loan to finance your home purchase or renovation, then you have come to the right place.

Axis Bank Home Loan

Axis Bank is one of the most trusted names in Indian banking industry. They offer a wide range of personal and business banking services that include savings accounts, fixed deposits, credit cards, mortgages, insurance policies and other financial products as well as services.

This article provides an overview of home loan opportunities at Axis Bank so that you know about all the pros and cons before taking the decision to go for it. Read on to know more Axis Bank Home Loan!

What is an Axis Bank Home Loan?

Interest Rate6.90% p.a*
Loan AmountBased on income
Processing FeesUp to 1% or min. Rs. 10,000/-
Penal Interest Rate24% p.a. or 2% per month
Prepayment/Foreclosure Charges0 – 2%
Max Tenure30 Years
Rate Packages AvailableFloating/Fixed
Axis Bank Home Loan Details

The home loan is a long-term financial commitment that is taken by banks and financial institutions for providing finance for the purchase of a house.

The loan amount is given at a particular interest rate depending on the creditworthiness of the borrower.

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Home loans are usually intended for individuals who are looking to buy a new home or as a way to renovate and expand an existing one.

You may also qualify for a home loan if you have a property that you want to use as collateral.

Borrowers must meet eligibility criteria for a home loan at Axis Bank

Before you take a home loan, you must meet certain criteria. You must be at least above 18 years of age and have a steady source of income. You also need to have a valid residential or business address.

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Moreover, to avail a home loan at Axis Bank, you will have to have a good credit score. For home loans, Axis Bank considers many parameters while deciding the eligibility of the borrowers.

They look at the repayment capacity of the person, his/her financial position and his/her repayment ability.

The loan amount, repayment period, interest rate, and other terms and conditions are based on these parameters. Hence, it is only a small percentage of the population who are able to get a loan from Axis Bank.

The amount you can get under a home loan at Axis Bank

Axis Bank home loans are offered in two forms – a conventional home loan and a home equity loan. The amount available for a home loan is decided by the loan officer at Axis Bank.

The minimum loan amount is ₹1 lakh and the maximum loan amount is ₹40 lakh. The interest rate charged on home loans at Axis Bank ranges between 2.5% and 30%. The higher the loan amount, the higher the interest rate is.

You can lower the loan amount and lower the interest rate by paying a higher amount as rental. However, you will have to pay a higher amount as rental.

Repayment of the loan and other terms and conditions of a home loan at Axis Bank

A home loan at Axis Bank comes with a repayment period of 25 years. During this period, the person who has taken the home loan will have to make regular payments of interest and principal amount.\

The repayment period also includes the period when the loan is repaid. The home loan amount is determined by the loan officer at Axis Bank.

He/she will take into account your income, the property value and the loan amount. Once you have submitted all the required documents and information, the loan officer will decide the loan amount and loan terms.

The home loan property value is the amount that the lender will pay you when you sell the property after the completion of the loan.

Some pros of taking out a home loan through Axis bank

  • Easy Process: There is no paperwork or documentation required for a home loan at Axis Bank. You can avail a home loan as long as you fulfill the eligibility criteria.
  • Flexible Interest Rate: You can choose from a wide range of interest rates offered by Axis Bank. The loan amount, repayment period, and interest rate are all flexible.
  • Better Security: Home loans at Axis Bank provide you better security as the lender gets the profit from the rise in the property value.
  • No Collateral: The lender does not insist on the submission of any form of collateral with a home loan at Axis Bank.

Some cons of taking out a home loan through Axis bank

  • Higher Interest Rate: Home loans at Axis Bank have a higher interest rate compared to conventional loans. You will have to pay 16.25% interest rate on a home loan amount of ₹40 lakh.
  • Larger Repayment: A home loan at Axis Bank comes with a higher repayment period compared to a home loan at an interest rate of 9%. You will have to pay ₹3.5 lakh towards interest and ₹5 lakh towards principal amount.
  • Higher DownPayment: You will have to make a larger downpayment while availing a home loan at Axis Bank.
  • Lower Liquidity: A home loan at Axis Bank is not suitable for those who want to quickly sell the property. You may have to wait for a long time before you can sell the property.

Important benefits of an Axis bank home loan?

No Downpayment

There is no need to make a downpayment when you take a home loan at Axis Bank. You will have to pay just the interest amount.

Interest Paid Only Once

Axis Bank home loans do not require you to pay any additional amount towards interest. Your only responsibility is to pay the loan amount.

Lower Rate of Interest

The loan rate at Axis Bank is lower compared to a conventional loan. You can avail a home loan of ₹40 lakh at an interest rate of up to ₹30%.

Longer Loan Period

The repayment schedule of a home loan at Axis Bank is 25 years as compared to a repayment period of 20 years.

Higher Loan Amount

You will be able to avail a maximum loan amount of ₹40 lakh at Axis Bank.

Key things to remember when taking a home loan at Axis Bank

Shop Around

You should not take a loan at any one bank as they are all alike. You must compare the interest rates and terms and conditions of every home loan offered by different banks.

Keep Your Credit Score High

It is important to keep your credit score high so that you can get a better deal from any lender. A high credit score shows that you are able to repay a loan amount.

Apply for a Loan Only Once

You should apply for a loan only once in your lifetime. Otherwise, it will be very difficult for you to get a loan from different lenders.

Go for a Bank Offering a Competitive Rate

It is better to go for a new bank offering a competitive rate as they get better terms and conditions.

Make Payments on Time and in Full

You must make all the payments on time and in full to appreciate the lenders. Otherwise, they will also report you to the credit bureau.

Understand the Rules and Regulations

You must read the home loan rules and regulations before you take a loan. They will help you understand the terms and conditions of a home loan. These are some of the important things you must keep in mind when taking a home loan at Axis Bank.

Axis Bank Home Loan Interest Rates 2022

Axis Home Loan SchemesSalariedSelf-Employed
Axis Home Loan6.90% p.a. – 8.40% p.a.7.95% p.a. – 8.55% p.a.
Axis QuikPay Home Loan7.95% p.a. – 8.45% p.a.9.15% p.a. – 9.35% p.a.
Axis Power Advantage Home Loan8% p.a. – 8.35% p.a.9% p.a. – 9.20% p.a.
Axis Shubh Aarambh Home Loan7.75% – 8.25% p.a.8.95% p.a.
Axis Fast Forward Loan7.75% – 8.25% p.a.8.95% p.a. – 9.15% p.a.
Axis Asha Home Loan10.05% p.a. – 11% p.a.10.30% p.a. – 11.50% p.a.
Axis Super Saver Home Loan8.15% p.a. – 8.30% p.a.9.20% p.a. – 9.35% p.a.
Axis Top Up Home LoanAt the bank’s discretionStarting from 8.90% p.a.

FAQ

Can I get home loan with 15000 salary?

If you are a salaried individual, then you can be eligible to get a housing loan up to 60x your net monthly income as a rule of thumb. So, if your net monthly salary is Rs. 15,000, you can get a home loan up to approximately Rs. 9,00,000.

What is minimum salary required for home loan?

Minimum Salary: ₹10,000 p.m. Minimum business income: ₹2 lac p.a.

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