AXIS
Bank, India’s 3rd largest private sector bank, has announced a limited period ‘Lifetime
Fixed’ interest rate housing loan scheme at 10.40% for affordable housing.
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The offer is valid only till March 31, 2015
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Lifetime Fixed is created specifically for the affordable housing
customers with a loan size of up to Rs. 50 lakhs
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The maximum loan amount offered will be Rs. 50 lakh for properties situated in
metros and Rs. 40 lakh for properties in other locations.
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The maximum property value in metros and non -metros is capped at Rs. 65 lakh
and Rs. 50 lakh, respectively.
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This is for middle-class customers ho have a monthly budget and need more stability
in EMIs.
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Under this product, Axis Bank will offer housing loans to both salaried as well
as self-employed individuals.
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For salaried customers, the fixed rate of 10.40% is available on all Vanilla
Home Loan offerings including Balance Transfer schemes.
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For self-employed customers the loan is available at interest rates starting
from 10.65% for similar variants.
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Customers can also move from fixed rate to floating rate, or / make a part
payment / or foreclose any time during the tenure of the loan by paying a
switching fee or / part payment / or foreclosure fee respectively.
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Fixed rate loans for other than affordable housing properties will continue to
be offered at 11.75% for 20 years.
"
With funds raised through long-term bonds, we saw this as an opportunity to
offer fixed rate home loan, which are close to the floating rates. This is a
long-term product so the current downward interest rate cycle may not affect
it,” said Mr. Jairam Sridharan, President, Retail Lending & Payments, Axis
Bank.
Recently,
Axis Bank raised Rs. 5,705 crore through long-term bonds for funding
infrastructure & affordable housing.
Axis
Bank’s retail loan portfolio stood at Rs. 90277 crore as on Sept 30 2014, of
which housing loans were Rs. 48,000 crore.
