Overdraft Facility Against Property - FAQs

Axis Bank will convey its decision within 30 working days from the date of receipt of the application provided the application is complete in all respects. The computation of 30 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 more features of an AXIS Bank Loan Against Property

For a complete list of Axis Bank Loan Center addresses and hours of service, please click here for Axis Bank Loan Center addresses and hours of service

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. 2 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

Yes! An Axis Bank Loan Against Property can be availed of either as a Term Loan with an EMI repayment option or as a Drop-line Overdraft Facility.

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 for loan against property Eligibility and documentation

You may get the List of Documents in either of the following ways:

• By calling any of our toll free numbers: 1860 419 5555
• By using your registered email id to write to us at: loans@axisbank.com

Yes. Total Processing fees of 1% of the outstanding principal with a minimum of Rs. 10,000 plus GST as applicable will be charged. Upfront processing fee of Rs 5000 plus GST shall be collected at the time of application login. This fee will not be refunded under any circumstances such as loan rejection/withdrawal of the loan application etc., non disbursement of loan for the reasons solely attributable to the customer. Balance processing fee as applicable shall be collected at the time of loan disbursement.

There may be. To check the schedule of charges associated with transactions, click here for schedule of charges associated with transactions

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 calling our Call Center at any of these toll free numbers: 1860 419 5555
• By using your registered email id to write to us at: loans@axisbank.com
• In person at any Axis Bank Loan Center. To find the one closest to you, please click here for Axis Bank Loan Center

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.

You may repay your Axis Bank Loan Against Property in any of the following three 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.
• Electronic Clearing Service (ECS): 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.
• Post-Dated Cheques (PDCs) : You can submit post-dated EMI cheques from a non-Axis Bank account at your nearest Axis Bank Loan Center. A fresh set of PDCs will have to be submitted in a timely manner. Please note Post Dated Cheques will be collected non-ECS locations only.

We recommend that you opt for either the SI or ECS mode of payment as they are both faster and less prone to error than the use of PDCs.

You may update your mobile number and email address in either of the following ways:

• By calling any of our toll free numbers: 1860 419 5555
• By using your registered email id to write to us at: loans@axisbank.com

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.

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 the AXIS Bank MCLR rate.

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.

You may repay your Axis Bank Loan Against Property in any of the following three 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.

We recommend that you opt for either the SI or NACH mode of payment as they are both faster and less prone to error than the use of PDCs.

Any pre-payment/excess amount paid by you to the Bank; shall be appropriated in the loan account basis the below criteria/methodology in the absence of any specific instructions from you:

• Excess amount greater than (>) EMI: If service request (SR) for part payment is not created/received within 2 days of receipt of funds, the excess funds will be adjusted towards principal outstanding as part payment.
• Excess amount equal to (=) EMI: If service request (SR)/instructions for part payment is not created/received on same day of receipt of funds, excess amount will be refunded back to your operative account.
• Excess amount less than (<) EMI: Excess amount will be kept unappropriated in the loan account for 15 days; post 15 days the excess funds shall be adjusted towards principal outstanding as a part payment.