Axis Bank Home Loan Interest Rates

4.5

Home loans from Axis Bank come with interest rates starting at 8.60% per annum, with repayment tenure ranging up to 30 years. The maximum loan amount you can get from Axis Bank is Rs. 5 crores. The bank also provides home loan offers for affordable housing solutions with EMI waivers, reducing EMI options, overdraft facilities, and mixed interest rate options. The processing charges for this loan can go to a maximum of Rs. 10,000.

  • Home Loan offer for You

  • 8.7% - 13.3%

    Interest Rate (p.a.)
  • ₹1L - ₹5Cr

    Tenure(1 - 25 Years)
  • ₹2,061 - ₹2,291

    EMI Per Lakh
  • 8.7% - 13.3%

    Interest Rate (p.a.)
  • ₹1L - ₹5Cr

    Tenure(1 - 25 Years)
  • 0.50%(Min ₹10,000)one time fee

    Processing Fee

Compare Axis Bank Home Loan Interest Rates with Other Lenders

The table below compares Axis Bank Home Loan Interest Rates with other banks and lending institutions.

  • Starting Interest Rate (p.a)
  • Processing Fee
  • Rating
  • Min. Loan Amount
  • 5 Lac
  • 20 Cr
Years
  • 5
  • 30
%
  • 6
  • 20

Monthly Loan EMI

Payment Breakdown:

Principal Amount

₹10,00,000

Interest Payable

Total Amount Payable

Axis Bank, a leading private sector bank in India, provides its customers with various financial products and services. One of its popular offerings is the home loan, with attractive interest rates and flexible repayment options. Customers can avail of home loans from Axis Bank for a minimum amount of 3 lakhs and a maximum of 5 crores, with a repayment tenure of up to 30 years.

The bank offers floating rates ranging from 8.75% to 9.15% and fixed rates at 14% for its home loans. The interest rates depend on various factors like loan amount, tenure, credit score, etc. This piece will discuss the Axis Bank Home Loan Interest Rates and other essential product details.

Axis Bank Home Loan: Key Highlights

Axis Bank Home Loan offers several key highlights that make it an attractive option for customers looking to finance their dream home.

  • Firstly, the bank provides smaller EMIs to help customers efficiently manage repayment obligations.
  • Secondly, there are no prepayment charges, enabling customers to pay off their loans ahead of time without incurring additional fees.
  • Thirdly, Axis Bank offers fixed and floating interest rates, allowing customers to choose the best option.
  • Fourthly, the bank allows customers to transfer their existing home loans to Axis Bank and enjoy better interest rates and repayment terms through its home loan balance transfer facility.
  • Finally, customers can avail of doorstep service, where the bank's representative visits their home to collect the necessary documents and complete the loan application process.

Axis Bank Home Loan Interest Rates: Schemes

Axis Bank provides home loans at attractive interest rates under various schemes, catering to the diverse needs of its customers. Explore the Axis Bank Home Loan Interest Rates and their schemes below:

For Salaried Individuals

Type Repo Rate + Spread Effective Rate of Interest
Floating Rate Repo Rate + 2.50% to Repo Rate + 2.90% 8.75% - 9.15% p.a.
Fixed Rate All Loan Amounts 14% p.a.

For Self-Employed Individuals

Type Repo Rate + Spread Effective Rate of Interest
Floating Rate Repo Rate + 2.60% to Repo Rate + 2.90% 8.85% - 9.15% p.a.
Fixed Rate All Loan Amounts 14% p.a.

Historical Trends of Axis Bank Home Loan Interest Rates

Axis Bank has consistently offered competitive home loan interest rates in the past five years. In 2018, the bank offered home loan interest rates starting from 8.35%, lower than the industry standard rate.

This rate gradually declined to 8.25% by the end of 2019. In 2020, the bank lowered its home loan interest rate to 8.15%. This rate continued till 2021 when the bank lowered the rates to 8.05%. Axis Bank home loan interest rates are currently 8.85%, making it one of the market's most competitive home loan options. Looking ahead, it is expected that the bank will continue to offer competitive interest rates in the coming years.

Axis Bank Home Loan: Fees and Charges

The table below shows Axis Bank Home Loan fees and other charges:

Particulars Applicable charges (exclusive of GST)
Processing Charges Up to 1% of the loan amount, with a minimum of Rs. 10,000
Prepayment Charges for floating rate loan, including part prepayment Nil
Prepayment Charges for fixed rate loan 2% of the principal outstanding
Penal Interest Rate 24% per annum, 2% per month
Switching Fees (Base Rate/BPLR to MCLR) When keeping the effective rate the same – No fees<br>When revising the effective rate – 0.5% on the outstanding principal, with a minimum of Rs. 10,000
Switching Fees (Floating Rate to Fixed Rate) 1% on the outstanding principal, with a minimum of Rs. 10,000
Switching Fees (Fixed Rate to Floating Rate) 2% on the outstanding principal amount
Repayment Instruction/Cheque Return Charges Rs. 500 per instance
Cheque/Instrument Swap Charges Rs. 500 per instance
Duplicate Statement Issuance Charges Rs. 250 per instance
Duplicate Amortisation Schedule Issuance Charges Rs. 250 per instance
Duplicate Interest Certificate (Provisional/Actual) Issuance Charges Rs. 250 per instance
CERSAI charges For loans up to Rs. 5 lakh – Rs. 50<br>For loans above Rs. 5 lakh – Rs. 100
Loan Cover/Insurance Compulsory

How to Calculate Axis Bank Home Loan Interest Rate?

Calculating the Axis Bank home loan interest rate is a simple process. The interest rate is calculated based on the loan amount, tenure, and prevailing interest rate at the time of disbursal. The bank uses a reducing balance method to calculate the interest on the outstanding loan amount.

For example, suppose you take a home loan from Axis Bank for Rs. 50 lakhs for 20 years at a floating interest rate of 9%. In that case, the calculation of the EMI and total interest payable on the loan can be done as follows:

Formula: 

EMI = [P x R x (1+R)^N]/[(1+R)^N-1]

Where, 

  • P = Principal amount of the loan 
  • R = Rate of interest per month (Annual rate of interest/12) 
  • N = Loan tenure in months

EMI calculation: In the above example, the principal amount of the loan is Rs. 50 lakhs, the tenure is 20 years, and the interest rate is 9% annually.

So, the monthly interest rate is 9/12 = 0.75%.

Using the above formula, the EMI calculation will be as follows:

EMI = [50,00,000 x 0.0075 x (1+0.0075)^240]/[(1+0.0075)^240-1] = Rs. 43,955

Total interest payable: The total interest payable over the tenure of 20 years can be calculated as follows:

Total interest = (EMI x N) - P = (43,955 x 240) - 50,00,000 = Rs. 58,14,749

Therefore, the total interest payable on the home loan of Rs. 50 lakhs from Axis Bank at a floating interest rate of 9% for 20 years is Rs. 58,14,749.

Why Are Axis Bank Home Loan Interest Rates the Best for Their Customers?

Customers can choose between fixed and floating interest rates depending on their preferences and financial situation. One of the reasons why Axis Bank's home loan interest rates are considered among the best in the market is the flexibility it offers borrowers.

Depending on their preferences and financial situation, customers can choose between fixed and floating interest rates. Fixed interest rates remain constant throughout the loan tenure, providing stability and predictability to borrowers.

On the other hand, floating interest rates fluctuate with market conditions, which means borrowers can take advantage of any decreases in interest rates. Axis Bank's floating interest rates are linked to external benchmark rates, such as the RBI's repo rate, which ensures transparency and fairness in interest rate determination. 

Factors Affecting Axis Bank Home Loan Interest Rates and EMI

When considering a home loan from Axis Bank, it is essential to understand the factors affecting the loan's interest rates and equated monthly instalments (EMI). Here are some key factors that can influence the interest rates and EMI of an Axis Bank home loan.

  • Credit Score: A high credit score is one of the most critical factors that can affect the interest rate of a home loan. Borrowers with good credit scores are less risky and more likely to get a lower interest rate.
  • Loan Tenure: The tenure of the home loan can also affect the interest rate and EMI. A longer tenure may result in a lower EMI but can also lead to a higher interest rate over the entire loan tenure.
  • Loan Amount: The loan amount can also affect the interest rate and EMI. Higher loan amounts may attract higher interest rates, resulting in a higher EMI.
  • Property Type: The financed property can also impact the interest rate and EMI. For example, loans for under-construction properties may attract higher interest rates than loans for ready-to-move-in properties.
  • Income: The borrower's income is another important factor that can influence the interest rate and EMI of the home loan. Borrowers with a higher income may be eligible for lower interest rates and higher loan amounts.
  • Market Conditions: The prevailing market conditions and economic trends can also impact the interest rates of home loans. Changes in the market can cause fluctuations in interest rates, which can affect the EMI of the loan.

Frequently Asked Questions (FAQs)

Does Axis Bank provide a 90% home loan?

Yes, Axis Bank offers a 90% LTV on a home loan.

What is the EMI for a 30 lakhs home loan for 20 years?

The EMI for a 30 lakhs home loan for 20 years at 8.75% is Rs. 25,918. Remember that the actual EMI may vary depending on the loan amount, interest rate, and tenure, among other factors.

How can I reduce my Axis Bank home loan interest rate?

There are several ways to reduce your Axis Bank home loan interest rate, such as maintaining a good credit score, negotiating with the bank for a lower rate, opting for a shorter loan tenure, choosing a fixed interest rate option, and making prepayments on loans.

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