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, you will find the different Axis Bank home loan options available to you, including what makes them stand out amongst the rest.
|Loan Amount Range||Maximum Loan Tenure||Features|
|Axis Bank Home Loan||Up to Rs. 5 Crore.||30 Years||Loans for Resident Indian, NRI Salaried and Self-Employed Customers.|
|Asha Home Loan||Rs. 1 lakhs to Rs. 35 lakhs||30 years||Available on a minimum combined family income of Rs. 8,000 p.m.|
|QuikPay Home Loan||Up to Rs. 5 Crore.||30 Years||Reducing Monthly Instalments.|
|Shubh Aarambh Home Loan||Up to Rs. 30 lakhs.||30 years||12 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 Loan||Rs. 30 lakhs to Rs. 5 crore||30 years||12 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 Loan||Up to Rs. 50 lakhs||Same 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 Loan||Rs. 30 lakhs to Rs. 5 crore||20 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 Loans||Up to Rs. 5 Crore.||30 years||Loans with 2 years fixed + floating rate of interest.|
|Pradhan Mantri Awas Yonja||Subject 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.
|Asha Home Loan||10.05% to 11.00%||10.30% to 11.50%||Not applicable.|
|Other Axis Bank Home Loans||7.75% to 8.40%||7.95% to 8.55%||12.00%, except Shubh Aarambh Home Loan and Fast Forward Home Loan.|
|Average Home Loan||7.54% 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
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.
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.
|Processing Fees||1.00% of loan amount with minimum of Rs. 10,000.|
|Penal Interest Rate||24% 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 Charges||Rs. 500|
|Cheque Swap Charges||Rs. 500|
|Duplicate Statement Issuance Charges||Rs. 250|
|Duplicate Amortization Schedule Issuance Charge||Rs. 250|
|Duplicate Interest Certificate Issuance Charge||Rs. 250|
|Duplicate No Dues Certificate||Rs. 500|
Issuance Charges for Photocopy of Title documents
|Charges on Customer Initiated Requests For Copies of Documents||Rs. 250|
|Prepayment Charges including Part Prepayment for Floating Rate Loan||Nil.|
|Prepayment Charges for Fixed Rate Loan||2.00% of the amount prepaid.|
|Equitable Mortgage Creation Charges||As applicable in the State|
|CERSAI Charge||Rs. 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
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
|Proof of Identity||Passport, Aadhaar Card, driving license, Voter ID, GOI issued Photo ID, or Government employee ID.|
|Proof of Address||Aadhaar 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 Date||Passport, PAN card, Aadhaar card with DOB, driving license, birth certificate, or SSC marksheet.|
|Proof of Signature||Passport, 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
|Salary Slips||3 months, or 6 months and 2 years bonus pay in case of variable pay.||-|
|Bank Statements||6 months||6 months of individual and business account.|
|Form 16||2 years or employment continuity proof||If 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.