Axis Bank Home Loan Interest Rates

Axis Bank Home Loan Interest Rate 2024 varies between salaried and self-employed individuals. The rates are usually higher for self-employed individuals given the fluctuation in income. However, with salaried individuals, since the pay per month is fixed, they are eligible for lower rates of interest rate.

Other factors like the CIBIL score play an essential role in the final interest rate offered to any applicant.

Here are the comparative rates for salaried and self-employed individuals currently at Axis Bank:

Axis Bank offers a host of different loan products. Each one is targeted towards a particular customer segment and helps fulfill their specific requirements. These loans vary in their features and in the interest rates as mentioned below:

Floating Interest Rates

The floating interest rates of Axis Bank are subject to change based on the following rate changes:

• Repo Rate
• The Marginal Cost of Lending Rate
• The Base Rate
• The Mortgage Reference Rate

Currently, the loan interest rates are related to the repo rates. However, the base rate and the mortgage reference rate offered by Axis Bank are subject to change based on a number of factors the cost of operations, the cost of funds, provisioning requirements, and the prevailing interest rates.

Fixed Interest Rates

What is the Axis Bank Home Loan Interest Rate type that you should choose? This is a common question that most customers ask. You can choose the floating or fixed interest rates if you can analyze how the market changes. Both of them have their advantages and disadvantages as mentioned below:

• The fixed interest rate on your home loan is always higher than a floating interest rate.
• With floating interest rates, the rate may drop or increase. While there is the risk of paying higher interest rates, you also miss out on the benefits of a lower Axis Bank Home loan Interest Rateif you opt for a fixed rate.
• If the fixed interest rate is lower when applying for a loan, it is advised to choose it as you can enjoy the advantage of lower EMI for the rest of the loan tenure.
• With floating home loan interest rates, prepayment penalties are not applicable. So, if you can prepay your Axis Bank Home Loan after getting access to additional funds, you may end up paying a higher penalty in comparison to the interest rate.

However, customers can change from fixed to floating interest rates or vice versa anytime during the tenure. However, some charges are applicable to make this change as mentioned below:

• To change from fixed to floating interest rate: 2% of the current outstanding loan amount.
• To change from floating to fixed interest rate: 1% of the current outstanding loan amount, subject to a minimum amount of Rs.10000
• To change from a higher fixed interest rate to a lower fixed interest rate: 0.5% of the current outstanding loan amount, subject to a minimum amount of Rs.10000
• To change from a higher floating interest rate to a lower floating interest rate: 0.5% of the current outstanding loan amount, subject to a minimum amount of Rs.10000

Axis Bank offers one of the most competitive interest rates in the market today. You can also use the Axis Bank Home Loan Interest Rate Calculator to find the best offers for you.

To understand the different options available to you in the market today, here is a comparison of Axis Bank Home Loan interest rates with other banks. Currently, Axis Bank Home Loan Interest Rates start at 6.90%.

Here is a comparison of the interest rates with other top lenders:

The interest rate offered to customers by various banks changes according to the eligibility criteria. There are some options to avail a lower interest rate:

• Make sure your CIBIL score is high.
• Show different income sources like pending salary hikes, bonuses, or rent from your properties.
• Add a co-applicant to the home loan. This will consolidate the income of both applicants to help you get a lower interest rate.
• Add a younger co-applicant. Age is an essential factor with home loans as it allows you to enjoy a much longer tenure on a loan.

In the previous 5 years, Axis Bank Home Loan Interest Rates have changed according to the repo rates. These changes apply to the floating rates of interest and are as follows:

The repo rate in India has seen a downward trend over the last five years. As a result, you can enjoy the lowest possible interest rates on home loans currently. To match the demands of the economy, the RBI has slashed the Repo Rates multiple times.

With the repo rates reducing, banks can get advances and loans at a cheaper rate. As a result, the liquidity increases automatically. This increased liquidity benefits the customers directly as they get loans faster and at lower interest rates.

On the other hand, when there is a rise in the repo rate, it becomes more expensive for customers to borrow home loans from any bank. In this way, the repo rate helps maintain liquidity in a country’s financial system.

A reduction in repo rate is also beneficial to banks as both businesses and retail customers tend to choose higher loans. As a result, overall consumption increases, further increasing the liquidity.

The most significant advantage of the decrease in repo rates over the last five years is that customers can expect lower EMIs and faster repayments toward their loans.

Axis Bank gives customers the option to transfer any existing balance from another bank to Axis Bank. This is also known as a home loan takeover, allowing you to choose a lower interest rate and reduce EMI whenever possible.

Currently, the home loan interest rates offered at Axis bank start at 6.90%. You can enjoy these low interest rates when you transfer your balance to Axis Bank. However, the interest rate offered depends on various factors like the employment status of the individual, the CIBIL score, the income, etc. You can check with Axis Bank Customer Care for specific details about the balance transfer.

A processing fee of 1% is applicable on these home loan balance transfers. You may also have to pay some foreclosure charges or processing charges to the bank where you are currently holding your loan account. When transferring the balance to a new bank, here are a few things that you should think about:

• Don’t allow teaser rates to affect your decision: Sometimes, banks offer seasonal discounts and offers that may be applicable for the initial loan period and then change according to the market lending rates. When these rates increase, they outweigh the advantage of lower interest rates in the first few years of the loan tenure.
• Understand all the costs involved: When you have applied for a home loan, many costs and charges are applicable besides the interest rate. Just because a bank is offering you lower interest rates, it does not mean that you are getting the best deal. Take into account different costs like the technical charges, valuation fees, legal charges, stamp duty, and processing fees associated with the transfer. Although there are several benefits to transferring a home loan, there are chances that the additional costs outweigh them.
• Read all the terms and conditions: Be aware of various clauses to the loan-to-value ratio, costs and fees, and the prepayment penalty applicable on the loan. Only when you are completely satisfied with these terms should you opt for a balance transfer.
• Service matters: Besides getting the most competitive prices for your loans, you should also have a good experience throughout your loan tenure. Make sure that the customer service is effective and quick with any bank that you choose to transfer your outstanding home loan to.

In short, you must consider the total amount that you spend to make the transfer. Axis bank offers the best interest rates and customer services, making it one of the primary choices for customers to transfer their outstanding balance to. There are many advantages to balance transfer, including:

• Lower rates of interest
• Having all your loans in a single place for more manageable repayment
• Reduced burden of EMI per month
• Better overall experience with a particular bank or NBFC.

Axis Bank also offers a Home Loan Balance Transfer Calculator feature that lets you calculate all the expenses and the EMI payable after you choose to transfer any outstanding balance.