Axis Bank Home Loans Review

Axis Bank laid its foundation in the year 1994. The Bank was promoted jointly by the Unit Trust of India and New India Assurance Company Ltd. The Bank today is capitalized to the extent of Rs. 407.44 Crore with the public holding at 54.51%.

The Bank has a very wide network of more than 1042 branches (including 56 Service Branches/CPCs as on 30th June 2010). The Bank has a network of over 4474 ATMs (as on 30th June 2010) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally as well in order to achieve excellence.

Axis Bank offers a basket of financial products and services like Personal, Corporate, NRI and Priority Banking. Under its Personal Banking, it offers home loans at flexible rates of interest. Axis Bank home loans can be taken for purchase of a plot of land & construction of a house thereon, construction of a house on a plot of land already owned, purchase of a new house/flat, purchase of an old house/flat, extension/renovation/repair of a house/flat already owned by self and/or takeover of existing home loan.

Analysis

LOAN TO VALUE RATIO – Axis Bank home loans can be applied for a maximum of 85% of the property value in case of home loans and for a maximum of 75% of the property value in case of extension/renovation/repair loans subject to credit discretion and are accompanied by a specially-designed insurance cover. This feature is very much comparable to other products in the market as most of them carry a similar loan to value ratio. UCO Bank also has similar offerings.

TENURE – Axis Bank home loans are available for a maximum tenure of up to 25 years.

INTEREST RATE –

PREPAYMENT CHARGES – NIL. This turns out to be the most attractive option for customers seeking Axis Bank home loans. As against banks like IDBI and PNB charging an early redemption charge of 2% of the amount being prepaid, Axis Bank home loan has no prepayment charges whatsoever.

PROCESSING FEES – Axis Bank charges 1% of the loan amount (applied for) + Service Tax applicable as processing fees to its customers. As against this offering, Bank of Baroda processing fee is one of the lowest in the market at 0.4% subject to a maximum of Rs 15000.