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Should an Axis Bank’s 12 EMI-Waiver Home Loan be taken?

Home LoanAxis Bank has recently introduced Shubh Aarambh, which is a new 12 EMI-waiver housing loan for the Indian customers. The loan waives off 4 EMIs every four years. The maximum loan amount is Rs.30 lakh and the minimum is Rs. 1,00,000. The maximum loan tenure is 30 years and the minimum is 20 years. The loan cannot be prepaid before 4 years. To avail the loan facility, at least 48 EMIs should be remitted. Shubh Aarambh is a flexible interest rate housing house. Salaried people are offered at 8.35% per year and self-employed at 8.40% per year. Axis Bank Home Loan is available to it’s customers at affordable interest rates, no pre-payment fees, simple and easy processing with that substantial tenure period.

The processing fee is charged at 1% that means you pay a sum of Rs.30, 000 as processing fee for a loan of Rs.30 lakh. The EMI cycle shall begin on the 5th of every month and it cannot deviate to some other date. Maintaining a consistent payment history is important to avail the loan benefit. The scheme allows only three delayed payments for more than 30 days but less than 90 days. Not even a single delayed payment for above 90 days is allowed. A loan of Rs. 30 lakh for 30 years at a floating interest rate of 8.35% per annum makes you pay a total sum of Rs.61.80 lakh including Rs. 31.80 as interest.

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Surya Bhatia, a managing partner, Asset Managers, said ‘The processing fee charged for the loan is high compared to other home loan providers. Axis Bank is contemplating to target sticky home loan buyers via this offer in case there is a sudden interest rate variation.’

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Naveen Kukreja, a founder and chief executive officer, PaisaBazaar, said ‘The housing loan primary lenders are offering an interesting rate between 8.35-8.50%. Some banks charge 0.50% processing fee and a few others have fully waived off the fee. The average home loan tenure in India is not more than 13 years that can be reduced to 10 years as a result of lowering housing loan interest rates. Shubh Aarambh is not for someone who is likely to prepay the loan upon receiving some bonus.’

Additional information about the product:

  • The loan cannot be obtained for a fixed interest rate.
  • The loan can be taken for buying an under construction property, home renovations and extensions or a property resale.
  • Salaried people should produce a copy of address and identity proof, the last 3 months’ salary slip, PAN Card, IT returns, and form 16 along with a filled loan application.
  • Self-employed professionals should produce a copy of address and identity proof, a copy of business existence proof, IT returns for the last two years, a processing fee cheque, and bank statement for the last 6 months.
  • The loan has a hassle-free balance transfer facility.
  • The loan has an option to avail government-aided interest benefit on qualifying under the ‘Pradhan Mantri Awas Yojana.’
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