Axis Bank Home Loan Review: Should You Apply?

Axis Bank Home Loan Review: Should You Apply?

Axis Bank offers a range of housing finance products, including home loan options for low income earners.

Good for

  • Individuals with low monthly income
  • Individuals who require flexibility for proof of identity and income

Bad for

  • Individuals seeking lowest interest rates
  • Older borrowers

Editor's Rating

3.0/5.0

While Axis Bank offers a diverse range of home loan options to its borrowers, you will find that the bank maintains higher interest rates on housing loans than other top lenders. Axis Bank offers standard processing fees and prepayment charges, but its eligibility criteria does not benefit older borrowers. On the other hand, if you are a low income earner, you may find that Axis Bank offers the best home loan options for you.

Summary of Axis Bank's Home Loans
Low monthly income requirement on some loans
Higher interest rates and other charges than other top banks
Fast home loan sanction at just 5 days, approval within 15 days
Many options for proof of identity, address and income
No pre-payment charges or penalties on floating interest rates

Table of Contents

What Makes Axis Bank's Home Loans Stand Out to Borrowers

Whether you are seeking to purchase a new home or transfer your existing loan balance, Axis Bank offers 9 home loan options to help you make the most of your new venture. Below, we've compared the different home loan options available to you, including what makes them stand out amongst the rest.

Loan Amount RangeMaximum Loan TenureFeatures
Axis Bank Home LoanUp to Rs. 5 Crore.30 YearsLoans for Resident Indian, NRI Salaried and Self-Employed Customers.
Asha Home LoanRs. 1 lakhs to Rs. 35 lakhs30 yearsAvailable on a minimum combined family income of Rs. 8,000 p.m.
QuikPay Home LoanUp to Rs. 5 Crore.30 YearsReducing Monthly Instalments.
Shubh Aarambh Home LoanUp to Rs. 30 lakhs.30 years12 EMIs off on regular payments of EMIs. 4 EMIs each waived at the end of 4th, 8th and 12th year. No extra costs, no prepayment charge.
Fast Forward Home LoanRs. 30 lakhs to Rs. 5 crore30 years12 EMIs off on regular payments of EMIs. 6 EMIs waived at the end of 10th and 15th year. No extra costs, no prepayment charge.
Top-Up Home LoanUp to Rs. 50 lakhsSame as outstanding Home Loan tenure.For existing Home Loan customers and for Balance Transfer customers. Get additional financing on the same property.
Super Saver Home LoanRs. 30 lakhs to Rs. 5 crore20 years for fully disbursed case and 22 years for partly disbursed case.Home loan with overdraft facility to save total interest payable on your home loan. Invest surplus funds in the account to earn interest and withdraw whenever needed.
Power Advantage Home LoansUp to Rs. 5 Crore.30 yearsLoans with 2 years fixed + floating rate of interest.
Pradhan Mantri Awas YonjaSubject to applicant's eligibility.30 years, with subsidy up to 20 years of loan.Interest subsidy on housing loans to eligible beneficiaries. Savings up to Rs. 2.67 lakhs.

Most banks have a loan tenure maximum of 30 years, but not all of them offer such a wide range of home loan amount eligibility. Depending on the Axis Bank housing loan you choose, you can avail a home loan amount as little as 1 lakh and as much as 5 crore.

Axis Bank Home Loan Interest Rates

While Axis Bank offers a wide range of home loan amounts, its interest rates run higher than those at other top banks. Below, you can see the floating interest rate range for both salaried and non-salaried individuals, as well as fixed rates, if applicable.

SalariedNon-SalariedFixed Rate
Asha Home Loan10.05% to 11.00%10.30% to 11.50%Not applicable.
Other Axis Bank Home Loans7.75% to 8.40%7.95% to 8.55%12.00%, except Shubh Aarambh Home Loan and Fast Forward Home Loan.
Average Home Loan7.54% to 8.41%7.60% to 8.53%-

Based on our research of over 30 banks, Axis Bank charges higher interest rates compared to the average home loan in India. In fact, its interest rates are more costly than a majority of banks.

Higher interest rates are generally charged to account for more lenient eligibility criteria. For example, the Asha Home Loan has higher interest rates up to 11.50% p.a., but this is to account for the risk of providing funds to lower income borrowers.

Read more: 2020 Home Loan Interest Rates of All Banks

Who Can Apply: Eligibility Criteria

Consider this if you seek an affordable home loan

Maximum Loan Tenure 30 years
Processing Fee Up to 1% of the Loan amount subject to minimum of Rs. 10,000

Like most banks, Axis Bank sets the minimum age of home loan eligibility at 21. The maximum age, on the other hand, varies depending on your job position.

If you are a salaried applicant, you must be 60 years old or the age of retirement, if sooner, by the date of your home loan maturity. For non-salaried and self-employed borrowers, you must be 65 years old. Either way, Axis Bank's maximum age is actually less than the maximum age of many top banks i.e. 65 to 70 years old. Therefore, Axis Home Loans may not be best suited for older borrowers.

Read more: Home Loan Eligibility: Compare Eligibility Criteria by Bank

Many banks expect an income of ₹25,000 per month. The higher monthly income you make, the more home loan amount you are eligible for.

If you make less ₹25,000, Axis Bank has the perfect home loan option for you. The Asha Home Loan provides funding up to 90% of property value for borrowers with a minimum combined family income of ₹8,000 p.m. Even more, you may be eligible to waive 12 equated monthly installments (EMIs) if you meet the terms and conditions. The Asha Home Loan is good for borrowers who make less income and wish to avail a loan amount up to 35 lakhs.

Other Charges and Fees

For most banks and home loan lenders, processing fees fall into the range of 0.50% to 2.00% of the loan amount. Axis Bank, with a 1.00% processing fee and Rs. 10,000 minimum, is no higher or lower than the average.

Below, you can see other charges and fees you may pay when choosing an Axis Bank Home Loan.

FeeAmount
Processing Fees1.00% of loan amount with minimum of Rs. 10,000.
Penal Interest Rate24% per annum (2% per month)
Switching Fees (Floating to Fixed Rate)1.00% on outstanding principal with minimum of Rs. 10,000.
Switching Fees (Fixed to Floating Rate)2.00% on outstanding principal.
Switching Fees (Higher Floating Rate to Lower Rloating Rate)0.50% on outstanding principal with minimum of Rs. 10,000.
Cheque Return ChargesRs. 500
Cheque Swap ChargesRs. 500
Duplicate Statement Issuance ChargesRs. 250
Duplicate Amortization Schedule Issuance ChargeRs. 250
Duplicate Interest Certificate Issuance ChargeRs. 250
Duplicate No Dues CertificateRs. 500

Issuance Charges for Photocopy of Title documents
Rs. 250
Charges on Customer Initiated Requests For Copies of DocumentsRs. 250
Prepayment Charges including Part Prepayment for Floating Rate LoanNil.
Prepayment Charges for Fixed Rate Loan2.00% of the amount prepaid.
Equitable Mortgage Creation ChargesAs applicable in the State
CERSAI ChargeRs. 50 for Loans up to Rs. 5 Lakhs. Rs. 100 for Loans above Rs. 5 Lakhs.

If you avail an Axis Bank home loan with a floating interest rate, you won't be charged prepayment penalties if you choose to pay down your home loan in advance. For home loans with fixed rates, prepayment charges are 2.00% of the amount prepaid. This is considered standard amongst top banks.

You may choose to switch from a fixed interest rate to a floating interest rate later in your loan term, or vice versa. If this is the case, you will find that Axis Bank has higher conversion charges than most lenders. For example, HDFC only charges 1.75% of the outstanding principal for a fixed to floating conversion, as well as 0.50% for a floating to fixed conversion.

Read more: HDFC Home Loan Review: Should You Apply?

How to Apply: Application Process

The home loan application process at Axis Bank is simple and straightforward. You can apply directly online or at your nearest bank branch. If you apply online, an Axis Bank representative will call you within a day to guide you through the process.

To begin your application process, you will need your Know Your Customer (KYC) and proof of income documents to determine your home loan amount. In general, banks and loan lenders can take up to 3 weeks to sanction your loan, but Axis Bank does it in 5 days.

Here, you can see a list of KYC documents that Axis Bank accepts for proof of identity, address, birth date, and signature. For each category, any one of the following options is valid. You will find that Axis Bank allows more options for proof of identity than several other banks.

Required Documents: KYC

MandatoryPAN Card
Proof of IdentityPassport, Aadhaar Card, driving license, Voter ID, GOI issued Photo ID, or Government employee ID.
Proof of AddressAadhaar Card, driving license, Voter ID, GOI issued Photo ID, Government employee ID, electricity bill, gas bill, telephone bill (land line), or property tax receipt.
Proof of Birth DatePassport, PAN card, Aadhaar card with DOB, driving license, birth certificate, or SSC marksheet.
Proof of SignaturePassport, PAN card, banker's verification, or notarized affidavit with ID & address proof.

For proof of income, Axis Bank offers a similar freedom to its borrowers. Below, you can see which documents are required to determine your sanctioned loan amount. According to the bank, you can choose any one of the following documents for proof of income.

Required Documents: Proof of Income

SalariedNon-Salaried
Salary Slips3 months, or 6 months and 2 years bonus pay in case of variable pay.-
Bank Statements6 months6 months of individual and business account.
Form 162 years or employment continuity proofIf applicable.
Income Tax Returns-2 years with computation of income. Without digital signature, CPC and tax paid challan.
Balance Sheet and Profit & Loss Account Statements-2 years
Proof of Business Existence-3 years

After your home loan is sanctioned, you must submit the property documents of the house or land you wish to purchase. Required documents for property validation are the same throughout most banks.

Once your property documents are validated, Axis Bank will approve and disburse your home loan. With the right required documents and follow up, you can get your home loan approved within 15 days.


Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in home loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.