A "low interest" loan shouldn't mean you have very little interest in paying it back!
Axis Bank’s home loans are affordable and customer-friendly. One of the home loan schemes the bank has is the ‘Happy Ending’ home loan, which comes with special benefits on Equated Monthly Instalments (EMIs). This is a scheme specifically to reward customers who pay their EMIs regularly and on time.
The Happy Ending home loans are available under the floating rate plan, for purchasing a house under construction, buying a ready-to-occupy house or an existing house, or purchasing a plot to build your own house. This facility can also be availed if you are transferring the home loan from another bank to Axis Bank. The benefits that make this scheme special are:
| For loans up to Rs. 20 Lakh | 85% of Documented Cost or Market Value (whichever is lower) |
| For loans between Rs. 20 lakh and Rs. 75 lakh | 85% of Documented Cost is subject to 80% of the Market value |
| For loans above Rs. 75 lakh | LTV up to 85% of the Documented cost subject to 75 % of the Market Value |
The eligibility criteria of the Happy Ending Home Loan is similar to the normal home loan in terms of age and income requirements, except with regard to the EMI payment terms.
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You need to present the following documents at the bank to avail the Happy Ending Home Loan from Axis Bank.
Axis bank’s current Marginal Cost of Funds-based Lending Rate (MCLR) are as follows:
| Loan Tenor | MCLR Rate |
|---|---|
| Overnight | 8.95% |
| 1 month | 9.05% |
| 3 months | 9.25% |
| 6 months | 9.3% |
| 1 year | 9.35% |
| 2 years | 9.45% |
| 3 years | 9.5% |
For floating-rate home loans, Axis Bank takes the 6-month MCLR as benchmark and adds a premium or mark-up to the MCLR to arrive at the actual lending rate. The interest rates will be reset every 6 months based on change in this rate. Fixed-rate loans are not based on MCLR rates.
Given below is the table with rate of interest for Axis Bank Happy Ending Home Loans (floating rate). The rates are slightly different for salaried persons and self-employed persons due to the variation of risk in both the categories.
| Type of customer | Interest Rate |
|---|---|
| Salaried | 7.75% – 8.10% p.a. |
| Self-employed | 8% - 8.25% p.a. |
Processing Fee: Up to 1% of the loan amount, with a minimum of Rs. 10,000.
GST: A GST of 18% is applicable on the loan processing fee.
Prepayment Charges: There is no foreclosure charge, even if you are making a partial pre-payment on floating-rate home loan.
Default Interest Rate: 2% per month, 24% annually.
Switching Fees: If you need to move from a higher floating rate to lower floating rate, a fee of 0.5% on outstanding principal loan amount will be charged. The minimum switching fee is Rs. 10,000.
CERSAI Charges: Rs. 50 for loans up to Rs. 5 lakh, and Rs. 100 for loans above Rs. 5 lakh
No. This scheme is only available under the floating rate home loan plans.
No, you cannot club any subvention scheme or any other kind of benefit plan with the Happy Ending scheme.
Even with a switch, this EMI-waiver scheme is available only to original floating-interest home loan customers. If you are an existing customer with a floating-rate loan subject to base rate instead of MCLR, you can pay the switching charges and move to the new MCLR regime.
You can revise your EMI payments for faster repayment, but you will not be able to enjoy the benefits of Happy Ending plan of you do so. But if the EMIs are increasing or decreasing because of change in MCLR, you can still be part of the Happy Ending plan as long as your tenure is more than 180 months (15 years).
The basis of the scheme is not waiver of 12 EMIs, but completion of 15 years. So if at the end of that period you have only 7 EMIs due, those 7 EMIs will be waived off, and not 12.
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