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Axis Bank is standing firmly amongst its competitors across the products it offers to individuals. The list of products even includes a home loan by which you can buy your dream home. It offers a high quantum of loan to help you buy a home with ease. The fact that the loan is available to both salaried and self-employed makes it more exciting. You can get a loan for a maximum of 30 years, making repayment easier through Equated Monthly Installments (EMIs). However, itu2019s the interest rate that decides greatly the shape of your repayment. Whether the Axis Bank Home Loan Interest Rate can ensure a smooth payment? For that, you need to gauge the effect of interest rate on your budget. We can help you by providing critical information on the same. Letu2019s get started.
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Axis Bank is standing firmly amongst its competitors across the products it offers to individuals. The list of products even includes a home loan by which you can buy your dream home. It offers a high quantum of loan to help you buy a home with ease. The fact that the loan is available to both salaried and self-employed makes it more exciting. You can get a loan for a maximum of 30 years, making repayment easier through Equated Monthly Installments (EMIs). However, it’s the interest rate that decides greatly the shape of your repayment. Whether the Axis Bank Home Loan Interest Rate can ensure a smooth payment? For that, you need to gauge the effect of interest rate on your budget. We can help you by providing critical information on the same. Let’s get started.
Axis Bank Home Loan Interest Rate Details Axis Bank offers home loans at varied interest rates according to the quantum of finance. Plus, the loan is benchmarked to 6-month MCLR, the short form of Marginal Cost of Lending Rate. The MCLR, which is subject to change periodically based on the prevailing market conditions, stands at 8.75% for a 6-month tenor. The spread will be charged over the MCLR to arrive at the actual lending rate. The spread increases with the increase in the loan amount.
Loans up to ₹30 lakh can be granted at an interest rate of 8.90% to salaried and 8.95% to self-employed individuals. As the loan amount goes past ₹30 lakh and remains within ₹75 lakh, the rate of interest goes up to 9.05% and 9.10% per annum for salaried and self-employed individuals, respectively. Loan amount exceeding ₹75 lakh would come with an interest rate of 9.10% for salaried and 9.15% for self-employed.
Effect of Axis Bank Home Loan Interest Rate on Your Budget The extent of interest rate will greatly determine the quantum of EMI payable to the loan. Besides the interest rate, loan amount and tenure would also impact the installments that combine a portion of principal and interest payable to Axis Bank every month. While the interest rate and loan amount influence the EMI directly, the tenure bears an inverse relationship with the installments.
You can check the Axis Bank Home Loan EMI Calculator to ascertain the indicative installment. The calculator estimates the EMI on the basis of the loan amount, tenure and interest rate. So, just enter these three variables in the calculator and see what comes as EMI. Further, you can check the outflow of interest over the chosen tenure. The spread portion charged over the MCLR is negotiable and so you should convince the bank to give you a concession on the same. You can do it successfully if you have a healthy income and a good credit history. The reduction in the interest rate would decrease the EMI accordingly.
The bank would like to see EMI accounting for not more than 60% of the net monthly income. But you can get the proportion reduced to 50% or even less by paying more margin money. By paying more margin money, the loan amount would reduce and so as the EMI.
