By Accommodation Times News Services
Axis Bank, India’s third largest private sector bank, today announced the launch of a ‘Lifetime Fixed’ interest Home Loan scheme for affordable housing customers. The new product offers home buyers housing loans at a fixed rate of 10.40% p.a. for the entire duration of the loan i.e. up to 20 years. The offer is valid only for a limited period and is created specifically for the affordable housing customers with a loan size of upto INR 50 lacs.
Under this product, Axis Bank will offer home loans to both salaried as well as self-employed individuals. For salaried customers, the fixed rate of 10.40% is available on all Vanilla Home Loan offerings including Balance Transfer schemes and for the Self-Employed the loan is available at interest rates starting from 10.65% for similar variants.
Mr. Jairam Sridharan, President – Retail Lending & Payments, Axis Bank said, “Affordable housing customers are looking for stability and predictability of their EMIs, for budgeting purposes. So a product with fixed EMIs throughout its lifetime is very attractive to them. Starting at an interest rate of as low as 10.40%, this scheme is quite comparable to floating rate loans currently being offered in the market, making the scheme a very attractive proposition.”
The product has been specially created for customers availing ‘Affordable Housing’ loans. The maximum loan amount offered will be INR 50 lacs for properties situated in metro locations and INR 40 lacs for properties situated in other locations. The maximum property value in metros and non -metros is capped at INR 65 lacs and INR 50 lacs respectively. Loans for properties that do not fall within the definition of affordable housing will be priced at the existing rate for 20 year fixed variant i.e. 11.75%.
Customers wishing to move from fixed rate to floating rate or make a part payment/foreclosure any time during the tenure of the loan shall be allowed to do so, by paying a switching fee or part payment/foreclosure fee respectively.