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Axis Bank may not be as popular as its other private peers but possesses the uniqueness of its own to win over the confidence of the customers. The private lender looks deep into the emerging needs and customizes the offers across the products it has in its portfolio. One such product is a home loan that the bank provides to help buy, construct, renovate or extend the housing units. As the loan runs a long journey for around 20-30 years on an average, the interest rate remains one of the top considerations as that pretty much decides the way the repayment is going to be. So, how does the Axis Bank Home Loan Interest Rate impact your repayment? This is what this article is for.
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How Does The Axis Bank Home Loan Interest Rate Help Purchase Your Dream?
Axis Bank may not be as popular as its other private peers but possesses the uniqueness of its own to win over the confidence of the customers. The private lender looks deep into the emerging needs and customizes the offers across the products it has in its portfolio. One such product is a home loan that the bank provides to help buy, construct, renovate or extend the housing units. As the loan runs a long journey for around 20-30 years on an average, the interest rate remains one of the top considerations as that pretty much decides the way the repayment is going to be. So, how does the Axis Bank Home Loan Interest Rate impact your repayment? This is what this article is for.
Axis Bank Home Loan Interest Rate 2019 Axis Bank provides home loans on both floating and fixed rate basis. For floating loans, the rates are set based on the loan amount, the credit exposure risk, etc. The rate of interest is set to change periodically as suggested by the name ‘Floating’ itself. It means the loans are benchmarked to the Marginal Cost of Lending Rate (MCLR). Plus, there’s a spread over the same to arrive at the actual lending rate. Depending on the prevailing market conditions, the bank can change the floating rates on a home loan. The MCLR, as of now, stands at 8.65%.
Loans up to ₹30 lakh come with a spread of 0.25% over the MCLR. So, the interest rate on such a loan amount would be 8.90% per annum. As the loan application amount goes above ₹30 lakh-75 lakh, the bank will charge a spread of 0.40% above the 1-year MCLR of 8.65%. The interest rate thus becomes 9.05% p.a. Loans above ₹75 lakh come at interest rates of 9.10% per annum, with a spread of 0.45% over the MCLR. Fixed loans are given for a tenure of 20 years at interest rates of 12% per annum.
Are MCLR and Spread Negotiable? As someone wanting to curb on the interest payment, you would ponder whether the MCLR and spread charged over the former are negotiable or not. Let’s be told that the MCLR is not negotiable. However, you can negotiate on the spread to get the rate reduced and so as the overall interest outgo. The spread is determined greatly on the individual's creditworthiness, his/her income and repayment potential, etc.
Use Axis Bank Home Loan Interest Rate Calculator to Compute Repayment Estimates Paying attention to the Axis Bank Home Loan Interest Rate Calculator is of utmost importance as it tells you the shape of repayment. The calculator helps to compute the Equated Monthly Installment (EMI) applicable to a loan. As the EMI combines portions of both interest and principal, you can know the total interest likely in your loan. Apart from that, you can also check the outflow of principal and interest on a periodical basis, year-on-year or month-on-month. The calculator also shows the outstanding loan balance at the end of every year. As the floating loan rates change, you can ask the bank to issue a loan statement from time to time in your repayment days to stay updated of the repayment.
