Axis Bank Home Loan - FAQs

What is home loan EMI?

A Home Loan Equated Monthly Instalment (EMI) is your regular payment towards the borrowed amount, divided into principal and interest components. Calculated from the loan's principal, interest rate, and tenure, the EMI ensures a steady reduction in your loan balance. For seamless management, it's deducted from your savings account. Adjusting the EMI or loan tenure may be necessary if interest rates change, ensuring consistency in repayment when you apply for a Home Loan.

What are the different types of home loans?

Various Home Loan options are available to suit different housing needs. These include:

Standard Home Loans for buying a residence.

Land Purchase Loans for acquiring a plot.

Construction Loans for building a home.

Home Improvement Loans for renovation projects.

Top-up Loans for additional funding on existing loans.

Balance Transfer Loans to switch lenders for better terms.

Pre-approved Home Loans for quicker loan processing.

How to apply for a Home Loan at Axis Bank?

Initiate your Axis Bank Home Loan application by completing the form online or at any Axis Bank branch. Submit your application along with the requisite KYC documentation. Post sanction, provide the necessary property documents. Following document verification and property appraisal, the loan approval and disbursement occurs within 15 days, subject to accurate and complete documentation.

Are there any advantages in applying for a home loan online?

Applying for a Home Loan online offers significant benefits, streamlining the application process. This saves time, simplifies comparisons of loan options, and calculates eligibility and EMIs instantly. The digital platform ensures a smooth customer experience, removing the need to visit a branch and facilitating a hassle-free and efficient loan application journey.

What are the tax benefits associated with a home loan?

Principal repayment qualifies for a deduction up to ₹1.5 lakh under Section 80C. Interest payment offers a deduction up to ₹2 lakh per annum under Section 24(b). Additional deductions up to ₹1.5 lakh for loans under the affordable housing segment as per Section 80EEA, subject to certain conditions. Do note that Section 80EEA benefits are not applicable for home loans taken post March 31, 2022.

Can I avail of two home loans at the same time?

It is permissible to have multiple Home Loans concurrently, subject to certain conditions:

No legal restrictions on holding more than one Home Loan.

Approval is contingent on satisfying the lender’s eligibility criteria.

The borrower must demonstrate adequate repayment capacity.

Is a home loan the same as a mortgage?

A Home Loan is secured to finance the purchase or construction of property, with the property itself serving as collateral. In contrast, a mortgage refers to a loan secured by property already owned, often bearing higher interest rates. Both involve pledging property to the lender, but they serve different financial purposes and are subject to varying interest rates in India.

Can I also avail of a Home Loan for home improvements or for a home extension?

Home Loans can be utilised for enhancing your property through renovations or adding extensions. Given their lower interest rates compared to personal loans, they are a cost-effective option for home improvement financing.

What is the maximum home loan amount that I can get?

Axis Bank offers Home Loans up to ₹5 crore. Check your eligibility with the Home Loan Eligibility Calculator to understand the potential loan amount available to you.

How long does it take for Axis Bank to sanction a home loan?

Upon submission of the requisite documents, Axis Bank typically sanctions a Home Loan within five business days, enabling a swift start to your home financing journey.

What is a Home Loan balance transfer, and how does it work?

A Home Loan Balance Transfer enables you to shift the outstanding loan amount to a different lender, often for a lower interest rate or a longer repayment term. This strategy can result in reduced interest costs and better financial management. Additionally, you might have the option to obtain further financing through a top-up loan during the balance transfer process.

What documents do salaried professionals require for Housing Loan application?

Salaried applicants for Housing Loan must provide their latest salary slips, Form 16, bank statements, and KYC documents, which include proof of identity, address, and income. Employers' certification may also be required to validate employment status and income details.

What is the Home Loan processing fee?

The processing fee for a Home Loan is a one-time charge, up to 1% of the loan amount. This fee covers the administrative costs incurred during the loan application process.

What to do if your Home Loan application is rejected?

If your Home Loan is rejected, review the following factors before reapplying:

Credit score: Check your credit score and rectify any errors. A poor score lowers your approval chances.

Loan amount: Ensure you're applying within your eligibility and not for an excessive loan.

Existing loans: If you're repaying other loans, your application could be rejected. Keep your monthly loan payments under 50% of your income for better approval chances.

How to improve your chances of getting a Home Loan?

To improve your chances of Home Loan approval, start by improving your credit score. A higher score can open doors to better loan terms. Assess your debt-to-income ratio and try to keep it low by reducing existing debts. Borrow within your financial limits to avoid overburdening yourself. If required, add a co-signer or guarantor with a good credit history, which can boost your chances of approval and help share the repayment responsibility.

What is the difference between a fixed-rate and a floating-rate Home Loan?

Fixed-rate Home Loans have a constant interest rate throughout the tenure, providing payment stability. In contrast, floating interest housing loans have an interest rate that varies with market conditions, offering the possibility of lower rates over time but with less predictability.