Axis Bank Shubh Aarambh Home Loan with EMI Waiver, Affordable Housing
Axis Bank Shubh Aarambh Home Loan launched, where disciplined browsers will be eligible for waivers of 12 installments on loans of up to 30 Lakh. Customers who take home loans of at least 20 years will be eligible.
Current home loan interest rate is 8.5%, based on this a borrower can potentially save over Rs 3 Lakh in waivers of principal and interest, customers eligible for interest subsidy under Pradhan mantri Awas Yojana will have additional savings.
Equated Monthly Installments (EMIs) will be reduced by the waiver. Waiver on EMIs will be staggered to ensure customers stickiness and encourage timely payments. Accordingly four EMIs will be waived off at the end of the fourth, eighth and twelfth year.
Supply of home units within the Rs 30 Lakh bracket has increased given the government’s thrust on affordable housing. It is estimated that the product will be in the vicinity of about Rs 4,000 Crore in about a year’s time.
Currently, Axis Bank’s affordable housing portfolio is around 5% of its retail mortgage book. As of 30 June, the share of home loans was around 44% in the retail portfolio of Rs 1.75 trillion.
Most of these loans are under its existing product, Asha Home Loan, which caters to serving the needs of low-income borrowers.
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