Axis Bank Home Loan
A home loan offers you the chance of owning a residential property and building an asset while at the same time enjoying tax benefits. You have to pay a certain percentage of the property cost, usually up to 20%, out of your funds. The loan amount can be repaid over a fixed period as per your convenience. Both the principal loan amount and the interest repayment are eligible for tax deduction under Income Tax laws. A home loan application can be done at the bank branch, loan processing centre or online. Let us look at some tips to keep in mind while applying for a home loan.
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- Tip 1: Be sure about how much you can afford through Equated Monthly Instalments (EMIs) because a home loan is a long term commitment. Deduct all your expenses, including other loan and credit card repayments from your take-home pay, to know how much you can afford as home loan EMI. Generally, banks allow EMIs up to 40% of your take-home loan salary.
- Tip 2: If you apply for a high amount, the bank may not approve your loan. Also, once you know the loan amount you are eligible for you can plan for the rest of the down payment accordingly.
- Tip 3: It is advisable to apply for a home loan at a bank where you already have a banking relationship, such as a savings/salary account, a car loan, a personal loan, etc. If the bank already knows your credit history and personal details such as employer, salary, etc, then the bank has to spend less time for the Know Your Customer (KYC) procedure.
- Tip 4: In most cases, the bank will look favourably at a customer with a good repayment record and high credit scores and may offer faster approval and disbursal, or flexible repayment schedules or lower processing charges. In some cases, the bank may offer a lower interest rate on the home loan.
- Tip 5: Ensure that the project where you are buying your house has all regulatory and environmental clearances in place. Or check if your bank has listed of approved projects of if your project is approved by your bank. This will also help faster approval of your home loan application.
- Tip 6: If you need a higher loan amount but your salary does not permit it, take a joint loan with your spouse/parent/sibling. You could also opt for a longer tenure loan. A longer repayment period means a lower EMI and thereby lesser burden on your monthly finances.
Advantages of Axis Bank Home Loans
- Attractive interest rates with floating and fixed type based on your preference
- Low processing fees
- Less paperwork
- No prepayment charges in floating interest rate type
- Easy home loan balance transfer
- Transparent application process
- eDGE Loyalty Points
Features of Axis Bank Asha Home Loan
- Objective: Axis Bank Asha home loan can be used to construct a home or purchase a property that is under construction.
- Loan Amount: Up to 28 Lakhs or 85% value of the property
- Loan Tenure: Repayment period depends on your financial situation. You can opt for longer tenure with small EMIs. Generally, it is up to 30 years.
- Prepayment Charges: No penalty is levied on prepayment for floating interest type. 2% of the outstanding loan amount is charged as prepayment fee for fixed interest type.
- Processing Fees: Up to 1% of the loan amount subject to minimum of INR 10,000
- Interest Type: Floating and Fixed
- Home Loan Transfer: You can transfer your home loan from other bank to Axis Bank at ease.
- eDGE Loyalty Points: Earn reward points on home loan transactions
Eligibility For Axis Bank Home Loan
Salaried individuals eligible for home loan
- Individuals in permanent service in the Government or reputed companies fall under the home loan eligibility criteria.
- Applicants should be above 21 years of age at the time of loan commencement and up to the age of 60 or superannuation, whichever is earlier at the time of loan maturity. You can check the amount you need to pay as EMI with the Home Loan EMI Calculator.
Professionals eligible for home loan
- Professionals (i.e., doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, and management consultants only) meet the Axis Bank Home Loan eligibility criteria.
- Applicants above 21 years of age at the time of home loan commencement and up to 65 years or less at the time of home loan maturity meet our home loan eligibility criteria.
Self-employed individuals eligible for home loan
- Any individual filing income tax returns can apply
- Applicants should be above 21 years of age at the time of the commencement of the home loan and up to 65 years or less at the time of maturity of the home loan
Home Loan Borrowing Limits
- Minimum - Rs. 3 lakhs
Margins
- For home loan upto Rs. 30 Lakhs - 10%
- For home loan above Rs. 30 Lakhs upto Rs. 75 Lakhs - 20%
- For loan above Rs. 75 Lakhs - 25%
Documents Required for Axis Bank Home Loan
The documents required to apply for Axis Bank Home Loan may differ from one scheme to another, however, the common list of documents that you must keep ready at the time of home loan application is given as below:
- Proof of Identity
- Proof of Address
- Proof of Age
- Proof of Signature
- Proof of Income
- Lease Rental Discounting
- Loan Agreement & Annexures
- Sanction letter
- TDS challan or bank statement reflecting the same
- Processing fee cheque in the name of the bank
- National Automated Clearance House (NACH) mandate/SI form and SPDC
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Loans