Loan Against Property For NRI Salaried - Frequently Asked Questions

Axis Bank will convey its decision within 5 working days from the date of receipt of the application provided the application is complete in all respects. The computation of 5 days shall starts from the day on which all documents required for a proper appraisal of the application are provided by the Customer to bank.

A Loan Against Property (LAP) has many advantages over a Top-up Loan. They include:
A Higher Loan Amount: Typically, an LAP may offer a higher loan amount than a Top-up Loan.
Avail of Different Property: While an LAP can be availed of against a different residential or commercial property than the one for which the loan was originally taken, a Top-up Loan may only be taken against the property already in question. This flexibility allows you to both avail of a higher loan amount and spread your liability.
Longer tenure: An LAP can be availed for a long term than a Top-up Loan.
For more features of an AXIS Bank Loan Against Property, please click here For'Axis Bank Loan Against Property'

For a complete list of Axis Bank Loan Center addresses and hours of service, please click here For 'Find Nearest Branch'

Axis Bank Loan Against Property can be availed for a self-occupied residence or a commercial property.

At Axis Bank, you can get a Loan Against Property from Rs. 5 lakhs to Rs. 500 lakhs. Some of the factors we consider when deciding a loan amount are:
The property’s registration
The property’s market value
Your requirement and eligibility
Your income and repayment capacity

Lease Rental Discounting (LRD) is a term loan offered against rental receipts derived from leased out commercial property. The loan is provided to the lesser based on lower of the discounted value of the future rentals and the underlying property value.

Yes! Axis Bank provides LAPs for salaried NRI customers.

Along with your application you need to submit the following documents :
Proof of residence
Proof of identity
Certified/latest financial documents
Copies of all property documents

To check which documents would be acceptable for each of the requirements above, please click here about'Loan Against Property Eligibility'

You may get the List of Documents in either of the following ways:
By calling any of our numbers click here For'Phone Banking'.
By visiting us at www.axisbank.com/support
By submitting your query here

Yes, banks charge a non-refundable processing fee for every LAP application.

The processing charge to avail of an Axis Bank Loan Against Property is up to 1% of the loan amount plus GST as applicable.

There may be. To check the schedule of charges associated with transactions, click hereabout'Loan Against Property - Fees & Charges'

The EMI consists of the principal amount and the interest on the principal amount. It is calculated by taking into account the loan amount, the time frame for repaying the loan and the interest rate on the borrowed sum. The EMI may be subject to change when interest rate changes or a part-payment of the Loan is made.

Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.

The EMI will be due on a fixed date each month. You will be notified of this date when your loan amount is disbursed.

You may place request for Statement of Account or Repayment Schedule or Interest Certificate in either of the following ways:
By visiting us at www.axisbank.com/support

You can download the Axis Bank Mobile Application or log onto Internet banking to get access to all account details pertaining to the loan. SMS MBANK to 5676782 to download the Axis Mobile App

By calling our Call Center at any of these numbers click here For'Phone Banking'

Yes! After the first quarter from the loan disbursal date, you can make a part-prepayment towards your Loan Against Property at your nearest Axis Bank Loan Center.

For charges applicable on part-prepayment, please click here

You may repay your Axis Bank Loan Against Property in any of the following ways:

• Standing Instruction (SI): This mode can be used if you have an existing Savings, Salary or Current Account with Axis Bank. You may wish to open a Savings account with Axis Bank to use this option. Your EMI amount will be debited automatically at the end of the monthly cycle from the Axis Bank account you specify
• National Automated Clearing House (NACH): This mode can be used if you have a non-Axis Bank Account and would like your EMIs to be debited automatically at the end of the monthly cycle from this account

You may update your mobile number and email address in either of the following ways:
By visiting us at www.axisbank.com/support

You can update your email ID by using Axis Bank Mobile Application. SMS MBANK to 5676782 to download the Axis Mobile App

By calling our Call Center at any of these numbers click here

Before we process a foreclosure, all outstanding dues must be cleared. So we request you to first check for and clear any remaining amount that may be payable towards your Home Loan by requesting a foreclosure statement from your nearest Axis Bank Loan Center.

Once all outstanding dues have been cleared, please submit a foreclosure request at the Loan Center, and we will begin processing your request.

To check the charge applicable for the foreclosure, please click here.

Once your loan account is closed, you may collect your property documents after 16 days from your nearest Axis Bank Loan Center.

MCLR stands for Marginal Cost of Funds based Lending Rate.
MCLR is the benchmark rate below which the banks cannot provide loans to the customers who are availing loans linked to MCLR. This new benchmark rate is applicable for new loans sanctioned & credit limit renewed from April 1, 2016 onwards.

Currently, the Bank has published the following MCLR:

• Overnight MCLR
• One-month MCLR
• Three-month MCLR
• Six month MCLR
• One year MCLR
• Two year MCLR
• Three year MCLR

The benchmark MCLR for Axis Home/ LAP loans is 6 months. The reset period would be every 6 months.

The MCLR will be a tenor linked rate which has to be reviewed and published every month on a pre-announced date
For the existing AXIS Bank MCLR rate please Click here For'Marginal Cost of Funds based Lending Rate (MCLR)' .

Yes, MCLR can be different between different banks as it will depend on marginal cost of funds, negative carry on account of CRR, operating costs, tenor premium of respective banks.

Banks can specify dates of interest reset which will be linked to either the date of first disbursement or date of review of MCLR. The MCLR prevailing on the day the loan is disbursed will be applicable till the next reset date, irrespective of the changes in the benchmark in the interim. The exact periodicity of reset will form part of the terms of the loan contract.
For example, if the periodicity of reset is Six Months, then Home loan/ LAP loans disbursed in the month of April 2016, would be due for reset in the month of Oct 2016 similarly all such loans disbursed in the month of May 2016 would be due for reset in the Nov 2016 and so on.

The reset period and date will be decided on the date of first disbursement.

In case of increase in MCLR on the reset date, the ROI will increase which in turn will impact the EMI/tenor of the loan as per Bank’s policy and will be communicated to the customer.

In case of decrease in MCLR on the reset date, the ROI will decrease which in turn will impact the EMI/tenor of the loan as per Bank’s policy and will be communicated to the customer.

It may be mentioned that the spread/margin of the loan would continue to remain the same.

Illustration: Consider a scenario where first disbursement of the loan is done on April 15, 2016 under MCLR-6 month’s benchmark rate, with the 6 months MCLR being 9.20% p.a. with a spread/margin of 20 basis points (bps). In such a case the effective rate would be 9.40% p.a.

In the above scenario, the effective rate of 9.40% p.a. would remain constant till the next reset date i.e Oct 2016.

On Oct 2016, the loans would be reset with the applicable 6 months MCLR rate as on that date.

It may be mentioned that the spread/margin of the loan would continue to remain the same. e.g. If the 6 months MCLR is 9.10% p.a. as on OCT 2016, then revised rate applicable for the loan would be 9.10% + 0.20% = 9.30% p.a. w.e.f. Oct 2016.

All existing loans linked to the Base Rate will continue till its repayment. All existing borrowers will, however, have the option to shift to the MCLR linked loan at mutually acceptable terms

Thus, in case of partly disbursed loan, for subsequent disbursements, the Base rate will continue to be applicable, provided the borrower does not exercise the option to move to the MCLR linked loan at mutually acceptable terms

(BR= Base rate, MRR= Mortgage reference rate, BPLR = Bank prime lending rate)

For all new loans sanctioned from April 1, 2016, the Bank has discontinued offering loans linked with Base rate/MRR/BPLR. However, the existing loans will continue on the respective BR/MRRR/BPLR till its repayment, provided the borrower does not exercise the option to move to the MCLR linked loan at mutually acceptable terms.

All existing customers have an option to switch from the existing system of Base rate/MRR/BPLR (BR/BPLR/MRR +/- spread) to the new system of 6 months MCLR (MCLR + spread) without changing the effective rate of interest. No switch fee would be charged for this option. The effect of conversion in the system, from existing system of BR/MRR/ BPLR to new system of 6 months MCLR, will be provided on an immediate basis.

Illustration: If an existing customer with loan amount of ₹ 25,00,000/- is at 9.55% p.a. effective ROI (Base + 0.20% spread) and if the customer opts to switch-over to 6 months MCLR then the Adjustable loan interest rate will become (6 months MCLR (9.20%) + spread (0.35%)) equivalent to 9.55% p.a..

Thus, the effective rate will continue to remain same at 9.55% p.a. with spread applicable on the loan being adjusted.

For changing from existing bench mark rate of BR/MRR/BPLR to MCLR-Six Months based benchmark rate, the customer will be required to visit the nearest loan Center, execute an agreement for conversion into MCLR Six month’s benchmark rate.