Searching for a lender that can offer you a home loan at a lower rate of interest? Well, your search could well end with Axis Bank, a giant in India’s banking space with around 4,000 branches across the country. The bank offers the loan at concessional rates to ensure a greater section of the society lives in their homes and relieve them from the hassles they go through while living in rented accommodation. So, what exactly the Axis Bank Home Loan Interest Rate is? Let’s check it out and more in this post.
What is Axis Bank Home Loan Interest Rate Presently?
Axis Bank offers home loans based on the repo rate, an external benchmark that it has adopted to price this lending product. The repo rate is the rate at which the central bank lends to commercial banks. Presently, the repo rate stands at 5.15%. Axis Bank charges a spread over the benchmark rate to arrive at the eventual lending rate. The spread will depend on the credit exposure risk, the credit score of an individual, etc. It will also vary based on the profession you have. Salaried will get the loan at a lower rate compared to their self-employed counterparts. The interest rate for salaried and self-employed is 8.55%-9.20% and 8.65%-9.40%, respectively.
Use Axis Bank Home Loan EMI Calculator to Check the Effect of Interest Rates
You should use the Axis Bank Home Loan EMI calculator to assess the effect of rates better. It works simply by calculating the Equated Monthly Installment (EMI) based on the interest rate, loan amount and tenure. The EMI is a combination of both principal and interest payable towards a home loan. The interest rate will have a direct impact on repayment. Lower the interest rate, more will be the EMI and vice-versa. The lower rates will mean lower interest outgo as well. Similarly to the interest rate, the loan amount also has a direct relationship with the repayment you will do. The tenure, however, bears a different relationship. Longer the tenure will be, lower will be the EMI and vice-versa. However, you will end up paying a lot of interest with a longer tenure.
Benefits of Taking Axis Bank Home Loans
Axis Bank Home Loan comes with a series of benefits.
Hassle-free Application Process – The loan requires you to submit simple KYC documents and property-related documents. Once the application is made, Axis Bank will quickly go through the document credentials and send a panel of experts to survey the property you wish to buy. These experts will do legal and technical verification before preparing a report of the property. The findings of the report will help decide the value of the property. This will eventually influence the loan amount you’ll receive.
No-prepayment Charges – As Axis Bank Home Loan are offered typically on a floating rate basis, which means you can prepay without paying any penalty. As home loans are usually of a very long tenure, you will have the opportunity to prepay the loan using the fat bonus or investment yields. This will help reduce the interest payment from your pocket.