Axis Bank Home Loan Interest Rates

Highlights on Axis Bank Home Loan Interest Rate

Before diving into specific interest rate details, let’s take a quick look at some essential highlights of Axis Bank housing loans. These pointers give you a snapshot of the key features borrowers should know before applying.

Feature	Details
Loan Amount	₹5 Lakhs – ₹5 Crores
Tenure	Up to 30 years
Processing Fee	Up to 1% of the loan amount
Interest Type	Floating & Fixed
Special Rates for Women	Yes
Balance Transfer Facility	Available
Prepayment/Foreclosure Charges	Nil on floating rate loans

Axis Bank Home Loan Interest Rates for Salaried vs. Self-Employed Individuals

Interest rates can vary depending on the borrower’s employment type. Salaried individuals usually have stable income, making them low-risk borrowers for banks, which often results in slightly lower interest rates. On the other hand, self-employed professionals may face a marginally higher rate due to variable income profiles.

Here’s a breakdown of the current home loan percentage in Axis Bank based on borrower type:

Borrower Type	Interest Rate Range (p.a.)
Salaried Individuals	8.50% – 9.05%
Self-Employed Individuals	8.60% – 9.15%

Axis Bank Home Loan Interest Rates for Women

To encourage women homebuyers and promote gender inclusivity in property ownership, Axis Bank offers a concessional interest rate for female applicants. Women applying alone or jointly with their spouses can enjoy slightly lower interest rates, making it a financially smarter decision.

Below is the applicable Axis Bank home loan interest percentage for women borrowers:

Borrower Type	Interest Rate Range (p.a.)
Women (Salaried)	8.45% – 9.00%
Women (Self-Employed)	8.55% – 9.10%

Axis Bank Home Loan Interest Rates – Scheme Wise

Axis Bank offers a variety of housing loan schemes to cater to diverse needs. These range from regular loans to specially designed products for low-income households, long-term borrowers, and balance transfers. Each scheme may come with different interest rates and features.

Let’s take a look at the housing loan Axis Bank interest rates scheme-wise:

Scheme	Interest Rate (p.a.)
Regular Home Loan	8.50% – 9.15%
Fast Forward Home Loan	8.60% – 9.20%
Shubh Aarambh Loan	8.55% – 9.10%
Asha Home Loan (Low Income Group)	9.00% – 10.25%
Power Advantage Loan (Repo-linked)	Varies with repo rate
Top-Up Loan	9.20% – 10.00%

How to Calculate the Effective Interest Rate on an Axis Bank Home Loan?

Understanding the effective home loan interest rate is important before finalising your loan. The effective rate represents the actual annual cost of borrowing, including the frequency of interest charges and any additional fees such as processing fees or insurance premiums. It provides a more accurate picture than just considering the nominal rate.

Most banks, including Axis Bank, use the standard EMI formula to estimate your monthly EMI. Here’s a breakdown of the formula and how to use it:

EMI Formula:

EMI = [P × R × (1+R)^N] / [(1+R)^N – 1]

Where:

• P = Principal loan amount
• R = Monthly interest rate (annual rate divided by 12 × 100)
• N = Loan tenure in months

Step-by-Step: Calculating EMI on a Home Loan

• Identify your loan amount (P):
  Let’s say you’re taking a home loan of ₹40,00,000. This is your principal amount.

• Convert the annual interest rate to a monthly rate (R):
  If your interest rate is 8.75% per annum, divide it by 12 to find the monthly rate.
  8.75 ÷ 12 = 0.729% or 0.00729 (in decimal form)

• Determine your loan tenure in months (N):
  For a 20-year loan tenure, multiply 20 by 12 to get 240 months.

• Plug the values into the formula:
  EMI = [40,00,000 × 0.00729 × (1+0.00729)^240] / [(1+0.00729)^240 – 1]

• Solve the equation:
  Once you calculate the full expression, the EMI comes out to approximately ₹35,284.

• Use an online calculator for ease:
  Instead of doing manual math, you can use the Axis Bank home loan EMI calculator or a reliable credit card EMI calculator to cross-check the result instantly. Simply enter the loan amount, interest rate, and tenure, and the calculator will automatically calculate your EMI.

List of Factors That Affect Axis Bank Home Loan Interest Rate and EMI

Home loan interest rates vary for each individual. Several factors play a crucial role in determining the current home loan interest rates Axis Bank offers to an individual. Here’s a quick overview:

• Credit Score: A high CIBIL score (750+) often qualifies you for lower rates.
  
• Employment Type: Salaried professionals generally enjoy better rates than self-employed individuals.
  
• Loan Tenure: A shorter tenure may attract lower interest rates, but it results in higher Equated Monthly Instalments (EMI).
  
• Loan Amount: Higher loan amounts may come with slightly higher interest rates.
  
• Property Type & Location: Premium properties or those located in metropolitan cities may be eligible for preferential rates.
  
• LTV Ratio: A lower Loan-to-Value ratio often translates to lower risk for the bank, resulting in better rates.
  
• Gender of the Applicant: Female borrowers enjoy a small concession in rates.
• Repo Rate Trends: Axis Bank’s floating-rate home loans are linked to the Reserve Bank of India’s (RBI) repo rate, which influences the overall borrowing cost.

How to Get the Best Interest Rate on Axis Bank Housing Loan?

Securing a lower interest rate on your home loan can significantly affect your overall repayment amount. Here are some practical ways to get the best Axis Bank housing loan interest rate:

• Maintain a high credit score: A credit score above 750 is one of the strongest indicators of financial reliability.
• Apply jointly with a woman co-applicant: Axis Bank offers slightly lower interest rates for women borrowers.
• Choose a floating-rate loan during falling interest rates: When the RBI reduces the repo rate, floating-rate loans linked to it adjust accordingly.
• Compare different loan schemes: Axis Bank offers various home loan schemes with other features and rate slabs. Always compare options like the Regular Home Loan, Fast Forward Loan, and Asha Home Loan. Each one may suit different borrower profiles and offer varying interest rates.
• Use your income and job profile to your advantage: Salaried individuals working with reputed companies or government departments often get better rates due to their financial stability.
• Check for pre-approved loan offers from Axis Bank: If you have an existing relationship with the bank, such as a salary or savings account, you might receive pre-approved offers. 
• Opt for a balance transfer if your current loan is at a higher rate: If you already have a home loan with another bank, shifting your outstanding loan balance to Axis Bank can help you take advantage of a better rate.

Axis Bank Home Loan Interest Rates of the Last 10 Years

Historical data can provide a better understanding of how rates have evolved. It’s a great way to assess market trends and make informed decisions about switching or locking in fixed rates. Here’s a year-wise table of Axis Bank’s home loan percentage over the last decade: 

Axis Bank adjusts its floating home loan rates accordingly as the repo rate fluctuates in response to RBI policy changes and changing economic conditions.

Year	Average Interest Rate (p.a.)
2015	9.55%
2016	9.30%
2017	8.85%
2018	9.00%
2019	8.65%
2020	8.00%
2021	6.90%
2022	7.25%
2023	8.50%
2024	9.00%