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Frequently Asked Questions About Home Loans
What is a Home loan?
Home Loan is a secured loan given by a bank against the security/hypothecation of an underlying property. In the event of failure to repay by the borrower, the bank can, subject to laws of India, attach/sell the underlying property and recover the principal amount and any outstanding interest thereon. A home loan can be availed for buying an under-construction property, resale property or even to construct a house on a vacant piece of land.
How much loan can I avail?
To calculate the borrowing limit, one can combine the earnings of oneself and the spouse or children. The combined income will then decide the borrowing limit. Minimum limit is INR 300,000 Maximum limit depends on the earnings combined For loan up to INR 2 Million - 15% of the property value in market For loan above INR 2 Million to up to INR 7.5 Million - 20% of the property value in market For loan higher than INR 7.5 Million - 25% of the property value in market
How can I apply for the Axis Bank Home Loan?
By applying online on Finance Buddha website. We will get in touch with you immediately to help you take your application forward.
What are the eligibility conditions to apply for the home loan other than the normal conditions?
Age of the applicants: The age specifically of the primary applicant. Dependents: Number of dependents in the family of the applicant Fixed Obligations: Assets and liabilities like existing loans, etc Income: Stability and income returns of the primary applicant's occupation.
Can I take a loan if I want to renovate my home or flat?
Yes, absolutely. You can avail the Axis Bank home loan for buying a home, constructing a home, repairs of your home, home improvement and its renovation.
Am I bound to pay only by the fixed rate of interest?
No, you get the opportunity to choose which kind of rate of interest you want to pay. You can pay through fixed rate of interest or you can pay by the floating rate of interest which depends on the MCLR and keeps changing.
What is the procedure of availing the home loan?
First of all, the applicant will fill in the details and with required documents, submit the application form. If the documents and all the eligibility criteria are met, the bank will sanction the loan and notify the customer about it within 30 days of the submission of the documents and the application form. The 30 day submission period starts from the day the customer gets the receipt of the application form. If the loan cannot be sanctioned, then that will be notified as well to the customer. Then, the legal proceedings shall follow. The Axis Bank representative will carry out the technical evaluation of the property.
Are there any fees to apply for the Axis bank home loan?
Yes, the application fees is charged in the form of processing fees which will be anyway be less than 1% of the loan amount to be availed along with the service tax that will be applicable.
How is an Equated Monthly Instalment (EMI) calculated?
It is calculated on the basis of the principal loan amount, the tenor of the loan and the interest (floating or fixed) that is charged. After part payment or interest rate changes, the EMI is also bound to change.
What is the due date of Equated Monthly Instalment (EMI)?
The due date will be fixed and told to you.
What do we mean by Pre-EMI interest?
It is the rate of interest levied on the part payment until the EMIs start to be paid.
What if my floating rate of interest increases? Does that mean I will have to pay bigger amount of EMI?
Whenever there will be an increase in the rate of interest floating, then Axis bank will try to increase the loan tenor. However, if this impacts the rate of interest, then EMI will have to be increased.
Can I get my EMI increased instead of getting my loan tenor increased?
It can happen in some cases. For this, the bank will have to check your loan paying capability. For this, the bank will need the below mentioned documents for verification: Salary slips for Last 6 months Bank statements indicating regular salary. Photo identity and address proof A letter for the change undersigned by you.
My EMI has been increased due to an increase in the rate of interest (flexible). Can the bank help me for lower EMI?
Whenever there will be an increase in the rate of interest floating, then Axis bank will try to increase the loan tenor. However, if this impacts the rate of interest, then EMI will have to be increased. If you want to get your EMI reduced in the latter case, you must make some part pre payment to Axis bank.
After I availed a home loan from the bank, the rate of interest that I opted for has increased. Can the bank help me in this case?
Yes, the bank will help you. You can switch your rate of interest as per the following switching amounts: Fees while switching from higher floating rate to lower is 0.5% of the outstanding principal Switching fees from floating rate to fixed rate of interest: 1% and cannot be greater than INR 10,000 Fees while switching from higher fixed rate to lower fixed rate is 0.5% of the outstanding principal Switching fees from fixed rate to floating rate of interest: 2%
Do I get tax benefit through Axis bank home loan?
The citizens of India can get home loan under the IT act of the Income tax of India.
How do I remain updated about my balance payments, repayment schedules and interest certificates?
You can get detailed information about the same through the below mentioned two options: You can call at the phone banking numbers 1800 233 5577 or 1800 209 5577 or 1800 103 5577 You can write a mail to Axis bank on the email address: email@example.com
Can my home loan be disbursed if the loan is partly disbursed?
Yes, it can be paid partly. Since the loan is disbursed partly, the interest will also be proportional to this. Therefore, you can pay the loan at lowered rate of interest.
What are the options through which I can pay my EMI?
The EMI can be paid through various modes: Post dated cheques: You can submit post dated cheques by your due date of the EMI at the nearest Axis bank loan centers. Electronic Clearing Service: By this option, non Axis bank account holders can pay their EMIs automatically at the end of the month. Standing Instruction: If you have a savings, salary, or current account with AXIS Bank then your EMI can be automatically deducted from your account at the end of your monthly cycle.
Where do I submit the set of post dated EMI cheques?
You can pay these cheques at the nearest Axis bank loan centers.