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Buying a home is generally a one-time investment. Even if the property price is high we can manage to afford it with financial discipline. Various banks offer flexible and hassle-free loans at such affordable rates, it is now much easier for the common man to own a house. Since its a life time investment, it needs a lot of thinking, computation and many other things to consider before picking the right bank for your needs.

In this article, we are going to see all possible questions related to AXIS Bank Home Loan.

Introduction

Axis Bank, one of the most trusted banks in India, is where you can get a home loan at an easy-going interest rate between 8.35% to 8.75%. Value of your property or budget, the location, your assets and liability, your credit score and many other factors will determine loan amount to be granted to you.

AXIS bank presents a convenient way to fulfill your dreams with AXIS Bank Home Loan. Their EMI calculator is a very handy tool to Calculate, evaluate and plan your budget in advance.

Interest Rate

AXIS Bank home loan interest rates start from 8.35% which is one of the best rates available in the market. The rates vary depending upon certain criteria like occupation, the quantum of income, nature of the loan, etc.

Category Type Loan amount (Rs.) MCLR + Markup Effective Rate Of Interest
For Salaried Individuals: Floating Rate Loan amount upto Rs 30 lacs MCLR + 0.20% 8.35% p.a.
Loan amount upto Rs 75 lacs MCLR + 0.50% 8.65% p.a.
Loan amount above Rs 75 lacs MCLR + 0.55% 8.70% p.a.
Top Up for existing customers Upto 30%- Same rate at which the home loan is running

30%-100%- LAP rate shall be applicable

For Self- Employed: Floating Rate Loan amount upto Rs 30 lacs MCLR + 0.25% 8.40% p.a.
Loan amount upto Rs 75 lacs MCLR + 0.55% 8.70% p.a.
Loan amount above Rs 75 lacs MCLR + 0.60% 8.75% p.a.
Top Up for existing customers Upto 30%- Same rate at which the home loan is running

30%-100%- LAP rate shall be applicable

Marginal Cost Based Lending Rate (MCLR) – 8.15%

MCLR Reset frequency for Home Loans – Half Yearly

Base Rate – 9.00%

Customers who have availed disbursement or received a sanction prior to March 31, 2016 will continue to operate on the base rate. Existing customers can get in touch with our customer care, if they wish to switch to MCLR.

Features and Benefits

  • Transfer loan balance with ease
  • Get loan-related services at your doorstep
  • No prepayment charges required for paying off loans before the due date (only for loans availed at floating rate of interest)
  • Quick and transparent processing
  • Special benefits for Premium banking customers
  • Repay your loan over a longer tenure
  • Repay your home loan in smaller EMIs and over a longer tenure, depending on the situation of your finances
  • Avail attractive interest rates
  • Fixed and floating home loan interest rates available as per your preference

So, are you ready to buy a house?

If the answer is YES, you must be having a lot of questions in your mind like:

  • Where will I arrange the money from?
  • Am I eligible for the loan?
  • How much down payment do I have to do?
  • How much EMI will I need to pay every month?
  • How can I compare the EMI of different banks on my own?
  • Where will I arrange the down payment amount and EMI amount from?

Let’s understand this with a simple example:

Let’s assume, you want to buy a duplex and give it a brand new interior. Obviously, the cost would shoot up a notch. To be able to afford your dream abode, you need to check with different banks. Say you sum up the cost and somehow it’s coming to Rs. 1 crore.

Now, you decide to pay off the entire loan in 10 years. With so many many banks offering loans at competitive prices, it’s likely you would be confused. A Home Loan EMI calculator will come in handy in a situation like this so you can check and compare the best deal.

The next pressing question is about the initial down payment?

The simplest option you have is to approach any relative or friend. But if you want to arrange it on your own then you must really think smart and be calculative in your decision. A great way is to begin is to use ClearTax Save

You have options like Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) and many other ways to save enough for the initial down payment.

Let’s find out the best way to save your money in 3 years, for down payment and for other expenses too:

Loan Value 1 crore
Time 10 yrs. (120 months)
Down payment 20% of loan value = 20,00,000

Now, consider the different scenario of saving your money from now for these 3 years:

Savings Account  3.5% Rs. 21,11,661 (Gains = 1,11,661)
Recurring Deposit  6.75% Rs. 22,22,439 (Gains = 2,22,439)
SIP  14-18% Rs. 2665813 (Gains = 6,65,813)

Hence from the above table SIP is the most worthwhile saving’s scheme; as an SIP, will enable you to invest regularly, keeping in mind your long term goal of owning your self curated dream home sooner than you expected.

EMI Calculator, how does it work?

An EMI Calculator is an e-tool that calculates the monthly amount payable to the lender (Bank) every month. To calculate the EMI applicable on your loan amount, you need to use the sliders above to adjust the values of the Principal amount (P), Time duration (N), and Rate of interest (R).

Follow these steps to calculate your EMI Amount.

  • Use the slider for Selecting Loan Amount
  • Select the Loan tenure in Months using the slider
  • Move the slider and select the Interest Rate
  • Recalculate your EMI anytime by changing the input sliders
  • EMI will be calculated instantly when you move the sliders

Different Plans and their Interest Rates

Axis Bank home loan interest rate is both fixed as well as floating in nature. Loan amount, time and interest rate vary with different plans.

AXIS Bank Home Loan Plans and their rates:

Home Loans Loan Amount Interest rate applicable Maximum Tenure
Fast Forward Home Loan Minimum: Rs. 30 lakhs 8.65% 30 years
Maximum: Depends on Combined Income  8.70%
Shubh Aarambh Home Loans Minimum: Rs. 1 lakhs 8.35% Upto 30 years 
Maximum: Up to Rs. 30 lakhs
Asha Home Loan Minimum: Rs. 1 lakh 12.50% 30 years
Maximum: Up to Rs. 28 lakhs
Axis Bank Home Loan Minimum: Rs. 3 lakhs 8.35% 11.75% Fixed 20 years
Maximum: Depends on Combined Income
Empower Home Loan Minimum: Rs. 10 lakhs 9.25% Floating 15 years 
Maximum: Up to Rs. 150 lakhs
Super Saver Home Loan Minimum: Rs. 50 Lakhs Floating 20 years for Fully disbursed case and 22 years for partly disbursed case.
Maximum: Depends on Combined Income
Top Up Home Loan Maximum: Rs. 50 Lacs Upto 30% of original sanction amount of home loan-Same as Home Loan rate Same as outstanding Home Loan tenure
Pradhan Mantri Awas Yojana Subsidy on loan amount defined against each category Floating and Fixed Subsidy up to 20 years of loan

Parameters to decide Interest Rates:

Axis Bank Home Loan will have criteria on which interest rates depend and vary. The loan amount you are opting for, your occupation and your salary are the factors that will determine the interest rates for you.

  • Loan amount: It primarily depends on the loan amount you apply for. Higher the loan amount, lesser will be the interest rate
  • Your Salary: Income helps you in identifying your rate of interest. Higher the income, lesser will be the rate
  • Type of loan opted for: Bank offers differential rates for women borrowers and the interest rate vary between fixed or floating rate schemes. The rate of interest may be higher or lower under their special or popular loan product offers

Eligibility Criteria

Eligibility criteria mentioned by the bank is different for different category of applicants, for example, salaried professionals and self-employed individuals. Each category shall meet the criteria to become eligible for the AXIS bank home loan.

Salaried individuals:
  • Individuals in permanent service in the Government or reputed companies fall under the home loan eligibility criteria
  • Applicants should be above 21 years of age at the time of loan commencement and up to the age of 60 or superannuation, whichever is earlier at the time of loan maturity. You can check the amount you need to pay as EMI with the home loan EMI Calculator
Professionals:
  • Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, management consultants only) can apply
  • Applicants above 21 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity meet our housing loan criteria

Self-employed individuals :

  • Any individual filing income tax returns can apply
  • Applicants should be above 21 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity

Penalties/Other Charges

Axis Bank Home Loan carries processing fee, foreclosure charges and some actual charges towards valuation fee besides many other charges. Let’s discuss some charges in detail:

Prepayment, Foreclosure charges are allowed with NIL charges for floating rate loans.

Other Charges – In addition to the above-mentioned charges, AXIS Bank also mentions technical and legal charges which are explained to the customer during the loan process.

Description of charges Amount (Rs.)
Processing Fee Charges Up to 1% of the Loan amount subject to minimum of Rs.10,000/-
Penal Interest Rate @24 % per annum, 2% per month
Switching Fees (Base Rate/BPLR to MCLR)# When effective rate is to be kept the same – No fees

When effective rate is to be revised – 0.5% on outstanding principal with minimum of Rs 10000/-

Switching Fees (Floating Rate to Fixed Rate)# 1% on the outstanding principal with a minimum of 10,000/-
Switching Fees (Fixed Rate to Floating Rate)# 2% on the outstanding principal amount
Switching Fees (Higher Floating Rate to Lower Floating Rate ) Switching Fees (Higher Floating Rate to Lower Floating Rate )
Switching Fees (Higher Floating Rate to Lower Floating Rate ) 0.5% on outstanding principal with minimum of 10,000/-The lower rate will be equal to the applicable carded interest rate only
Repayment Instruction/Cheque Return charges 500/- Per Instance
Cheque/Instrument Swap Charges 500/- Per Instance
Duplicate Statement Issuance Charges 250/- Per Instance
Duplicate Amortization Schedule Issuance Charges 250/- Per Instance
Duplicate Interest Certificate (Provisional/Actual) Issuance Charges 250/- Per Instance
Issuance Charges of Credit Report 50/- Per Instance
Issuance Charges for Photocopy of title documents 250/- Per document set
Charges on customer-initiated requests for copies of documents 250/- Per document set
Prepayment Charges including part prepayment for floating rate loan NIL
Prepayment Charges for fixed rate loan 2% of the principal outstanding
Equitable Mortgage Creation Charges As applicable in the As applicable in the state
CERSAI charges Rs 50/- For Loans up to 5 Lakhs

Rs 100/- For Loans above 5 Lakhs

# For Partly Disbursed cases, charges would be calculated on the total outstanding principal + undisbursed portion of the sanctioned amount.

** Goods and Services Tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable).

Process of Applying

Follow these steps to get a hassle-free Axis Bank Home loan:

  • Go to Axis Bank website or you can go meet the loan relationship manager/executive at the branch
  • Submit the application form with all supporting documents
  • Bank will send you the sanction intimation
  • Applicant needs to submit the property related documents
  • Bank’s legal and technical teams will review and then would confirm the home loan
  • Finally, the loan will be disbursed
  • The whole process would take around 15-20 days

Documents

Documents required to apply for a home loan from AXIS Bank are as follows:

Document Needed Salaried Self Employed
Proof of identity Valid passport / Voter ID / Valid Driving license with photograph /Pan card /Aadhar card Valid passport / Voter ID / Valid Driving license with photograph /Pan card /Aadhar card
Proof of Income Latest 3 months salary slip/certificate for fixed salary/Latest Form 16

-and-

Last 6 months bank statement/Passbook of the salary account

IT- returns for the last 2 years along with computation of income certified by CA

-and-

Last 6 months Bank statement for operative account both personal and business.

Proof of Residence Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License. Latest Electricity Bill/utility bill/ piped gas bill/ telephone bill (Not more than 2 months old)/ Passport/Aadhar card/ Voter ID/ Driving License.

AXIS Bank Tax Benefits

The income tax laws in India provide certain benefits for taxpayers who avail a home loan. Such taxpayers are eligible for a deduction of the interest paid on such house property to the extent of Rs 2 lakhs in case of a self-occupied house in that particular Assessment Year (AY) while they can claim the entire interest paid during the AY as a deduction without any limit, that is if they have given the property on rent.

Further, the principal component of such loan repayment can be claimed as a deduction from the total income under Section 80C, up to a maximum of Rs 1.5 lakhs.

Similar Banks Offering Home Loans

ICICI Bank  Kotak Bank  HDFC Bank  Central Bank of India
PNB Bank  Andhra Bank  Corporation Bank  Union Bank 
IDBI Bank  Yes Bank  Bank of India  CitiBank 
HSBC Bank  RBL Bank SBI Home Loan Tax Benefit

 

If you had invested Rs 10,000
every month for last 25 years
in equity funds, you could make

₹ 3.3 Crores
at 15%* annual returns

Invested
Rs 30 Lakhs

Received
Rs 3.3 Crores

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