Axis Bank Lowers Home Loan Rates in Line with its peers

1. Axis Bank Lowers Home Loan Rates in Line with its peers

2. There is a tough competition in the market as far as home loan lenders are concerned. There are various banks such as SBI, HDFC Bank, Axis Bank, ICICI Bank etc are providing the facility of home loan. Along with the same, there are various Non-Banking Financial Corporations and financial service providers which also provide the various loans including the home loan. It was first, announced by the market leader, State Bank of India to cut down the rates of home loan in order to extend the helping hand to the customers in terms of home loan. Following the footprints of the market leader, SBI, the other banks have also announced the reduction as far as home loan rates are concerned. The impact of the SBI announcement was so impactful that within one week, the other banks such as ICICI Bank, HDFC Bank, Axis Bank etc. have lowered their home loan rates. The lower interest rates are being offered to the new customers. If the existing clients want to avail the benefits of the new interest rates then, they shall have to pay the switching fees, else they will be charged the earlier interest rate only.

3. The Axis bank is the third largest bank in private sector of India and it is one of the most desirable home loan providers. Due to the competition pertaining in the market, the Axis Bank has also announced to cut down the interest rates of home loan by 30 basis points for the loan amount up to 30 lacs. The same has been proven as a helpful decision for the non-salaried class of people as well as salaried class of people. The salaried people can now avail the home loan facility at the 8.35% of interest rate, which is the marginal cost based lending rate (MCLR), which was earlier available at the 8.65% MCLR interest rate. The basis points have been reduced to 20 basis points from 50 basis points. As far as the non-salaried or self-employed or entrepreneur class is concerned, the home loan is now available at the 8.40% of interest rate, which was earlier available at 8.70% of MCLR. The basis points have been reduced to 25 basis points from initial 55 basis points.

4. Rajiv Anand, The Executive Director of the Axis Bank, stated that there is a genuine, large and the utmost need for affordable housing. He further added that the deduction in the interest rates will help people to build and live in their house of dreams. The home loans are the largest segment in terms of retail segment and it has the potential growth aspects. Hence, this is a major step by Axis bank to foster the ecosystem with the credit delivery by catering this particular segment with lower interest rates. According to Rajiv Anand, the Axis Bank would like to raise the standards of the affordable housing, however the bank does not believe in competing on the pricing front, but yes, the bank shall do so on by adhering to the transparency and maintaining the service standards. But, deduction of the home loan rates shall certainly bring various growth aspects to bring productivity in the home loan segment.

5. The Axis Bank has made a smart move by reducing the home loan interest rate as the same shall help in gaining the competitive advantage in the industry. Axis Bank is already known for its quality standards and customer service, especially in the segment of loan division. Hence, being the third largest private sector bank of the country, every customer will be attracted to the reduced rates and would want to avail the benefits of the loan. Also, the bank has come up with catering strategies of both, salaried and non-salaried, segment. By implementing the same, the bank has successfully captured the attention of all the categories of the customers. Not only that, but the bank is now offering the new interest rates to the existing home loan customers as well. Just by paying the nominal fees of switching fees, the existing customers also can avail the benefits of the reduced rates. The bank is helping the customers to fulfil their dream of buying and living in the own house. This is bringing in immense customer satisfaction, and thus the same is fostering the growth of the bank, as home loan is one of the largest segment in which the Axis Bank is dealing with. The bank has strategically envision the growth strategy in order to foster the productivity.