Tuesday, July 19, 2011

Good offer by Axis Bank Home Loan

Looks like Axis bank has an an enticing offer that could work well with existing home loan customers of different banks/NBFCs who have been suffering with atrociously higher interest rates. 
Interest rates are too much competitive and the striking features are: 

1. Very low spread (i.e. 0.40 for loans<25L), yet great final interest rate. Note that lower spread means lower scope of manipulation for the bank in future. (If you don't understand this, wait for my next article in coming days. )

2. ZERO prepayment penalty even for refinance of your home loan. (I had always liked this particular feature of axis bank). Most of the banks charge 2%. 

The only concern might be the high processing fee (Rs. 10000 as they have mentioned in the email). But i'm sure it could be negotiable once you meet the branch managers. 

Those paying @ above 11% stand to benefit much even after paying 2% to your existing lender. I have seen people still paying @ above 13% with the so called top home loan providers. 

Below is the email that i received from info@apnarupee.com

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Dear Sir / Madam


Rate of interest for
Rate of interest for
Rate of interest for
Loans upto Rs. 25,00000 Lacs 
Loans Rs. 25,00001 to Rs. 75,00000 Lacs
Loans Rs. 75,00001& above Lacs
10.15 % p.a.
10.25 % p.a.
10.40 % p.a.
(Base Rate + 0.40%)
(Base Rate + 0.50%)
(Base Rate + 0.65%)

NOTE -   1. Part payment    - Nil charges on part payment  
               2. Full prepayment- Nil             
              3. Current base rate - 9.75 % 

Special Features *

·      Attractive Interest Rates
·      Tenor up to 25 years
·      No Part Payment / Pre-payment charges
·      Maximum Funding 85% up to Rs. 20 Lacs & above 20 Lacs 80 % of
        The Agreement Value + Stamp Duty +   Registration charges + Electricity
        + Parking+ one time maintenance + service tax + vat
·      Fixed and Floating Options
·      Monthly Reducing Balance
·      Simple Documentation
·      Balance Transfer Facility
·      Processing Fee 10000 & equitable mortgage fee 0.2% of the Loan Amount
·      Property Insurance & Personal Insurance cover 

 Personalized Doorstep Services.

Documents list    
Personal Details:-
1) Applicant & Co-applicant passport size colour photo.(1 copy each)
2)   Age Proof & Photo ID proof (PAN Card / Driving License/School Leaving Certificate)
3)  Address Proof (latest electricity/telephone/ration card bill/rent agreement/employers  
4) Qualification Certificate.   
5) Processing fee cheque

Financial Details: -
1) Latest 3 month salary certificate /slips
2) Latest two years Form-16
3) Appointment/confirmation letter (if required)
4) Last 6 month bank statement.
5) Repayment track record of loan and supporting banking (if any)

For further details contact:

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-- removed by Abhijeet

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Disclosure: The author of this blog himself has availed loan (current interest rate 10.25 after paying multiple conversion fees to lower the interest rate) from HDFC and would like to shift to different bank provided he gets a better deal. 

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