Axis Bank Home Loan - FAQs

Yes! You can avail of an Axis Bank Home Loan from for any of the following:

• Purchase of a home.
• Construction of a home.
• Home repairs.
• Home improvements.
• Home extension

Among the multiple factors that Axis Bank considers in determining Home Loan eligibility are:

• Income of all applicants.
• Age of the primary applicant.
• Number of dependents that the applicants have to support.
• Assets and liabilities of the applicants.
• Stability and continuity of the primary applicant's occupation.

To check your eligibility online, please click here for check your eligibility online .

Yes! Axis Bank offers both Fixed and Floating rates as explained below:
Fixed Home Loan rates: The rate of interest applicable for the Home Loan is fixed throughout the term of repayment of Loan. Floating Home Loan rates: The rate of interest applicable for the Home Loan changes with change in the Bank's Base Rate/ Repo Rate.

For more details on interest rates offered by Axis Bank , please click here For more details on interest rates offered by Axis Bank

The Home Loan floating rate will change when either of below rate changes:

• Repo Rate change on the reset date for loans sanctioned from 1st October’19
• Axis Bank's Marginal cost of lending rate (MCLR) change on the reset date for loans sanctioned from 1st April, 2016
• Axis Bank's Base Rate (BR) for loans sanctioned from 1st July, 2010
• Axis Bank's Mortgage Reference Rate (MRR) for loans sanctioned before 1st July, 2010

Axis Bank reassesses the BR and MRR from time to time after considering numerous factors including the cost of funds, cost of operations, prevailing interest rates, and provisioning requirements. 

Yes, it is mandatory to have a co-applicant. If someone is the co-owner of the property in question, it is necessary that he/she also be the co-applicant for the Home Loan. If you are the sole owner of the property, any member of your immediate family can be your co-applicant.

For the List of Documents to be submitted along with your Home Loan application, please click here For the List of Documents to be submitted along with your Home Loan application

Once we receive a completed application form along with the necessary supporting documents two things happen:

• Determination of your eligibility for the Home Loan: For this we consider our internal policy guidelines and also examine all the documents submitted by you. If you are deemed eligible, you will get an approval for a specific loan amount based on your requirement, repayment capability and the value of the property.

Axis Bank will convey its decision within 30 working days from the date of receipt of the application provided the application is complete. 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.

If we find we are unable to extend the loan to you, we will communicate the same to you promptly.
• Legal and Technical verification: Lawyers and property valuers empanelled by the Bank will verify your title documents conduct a technical evaluation of the property.

Once both these are complete, the Bank will process the disbursement of your Home Loan.

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.

To check the schedule of charges associated with transactions , click here for check the schedule of charges associated with transactions

Pre-EMI interest is the interest on the loan amount disbursed by the bank. It is payable every month from the initial date of disbursement until the commencement of the EMI payments.

The EMI consists of the principal amount and the interest on the balance outstanding. 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.

Yes! The EMI consists of the principal amount and the interest on the balance outstanding amount. Since only a part of your loan has been disbursed, the interest component of your EMI will be proportionately lower to reflect this.

The EMI will be due on a fixed date each month. This date will be notified when your loan is disbursed.

Yes! You can switch from a floating rate of interest to a fixed rate of interest and vice versa.

Charges for changing from fixed to floating rates of interest	Charges for changing from floating to fixed rates of interest	Charges for Higher Fixed Rate to Lower Fixed Rate	Charges for Higher Floating Rate to Lower Floating Rate
2% of the outstanding Loan amount	1% on the outstanding principal with a minimum of Rs.10,000/-	0.5% on outstanding principal with minimum Rs.10,000/-	0.5% on outstanding principal with a minimum of Rs.10,000/-

*Goods and Services Tax (GST) will be charged extra as per the applicable rates, on all the charges and fees (wherever GST is applicable).

This option can be exercised 3 times during the tenor of your loan as per the bank’s approved policy, effective 01 Jan 2024.

Please visit your nearest loan centre to execute the supplementary agreement along with signature of all the borrowers carrying Photo ID and Signature proofs.

Each Home Loan applicant's EMI is decided upon his/her repayment capability. In order to enable us to reassess your EMI, you will need to submit the following documents at an Axis Bank Loan Center:

• Last 3 months' salary slip.
• Last 6 months' bank statements reflecting your salary.
• Your photo identity and address proof.
• A letter requesting the change

Currently, Axis Bank levies no charge to increase the EMI.

In order to avoid burdening you with a higher EMI, when the rate increased, Axis Bank would have first attempted to increase the tenure of the loan subject to permissible limits. If, however, despite the increase in tenure, the EMI is not adequate to cover the interest payment, then we are entitled to increase your EMI amount.

To reduce your EMI, we recommend making a part prepayment at your nearest Axis Bank Loan Center.

For any query on part prepayment, please write to us on: loans@axisbank.com. You \may also reach us at our Call Center by dialing any of these toll free numbers click here   for reach at our Call Center by dialing any of these toll free numbers ..

Yes, resident Indians are eligible for tax benefits on both the principal and the interest of a Home Loan under the Income Tax Act. Please consult your tax advisor for details.

Axis Bank's PAN is AAACU2414K and its registered office address is Axis Bank Limited, TRISHUL, Third Floor, Opp. Samartheshwar Temple, Nr. Law Garden, Ellisbridge, Ahmedabad - 380 006

• Download the Axis 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.

You may repay your Home Loan in any of the following two ways:

Please submit your fresh set of post-dated cheques at your nearest Axis Bank Loan Center.

Yes, you can make a part-prepayment towards your Home Loan at your nearest Axis Bank Loan Center. If you are on a floating interest rate, no charge will be applicable. If you are on a fixed rate of interest, please check the charge applicable by clicking here If you are on a fixed rate of interest, please check the charge applicable .

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

• By calling our Call Center at any of these numbers: 1860 419 5555 or 1860 500 5555.
• Visit www.axisbank.com/support.
• You can update you email ID by using Axis Bank Mobile App.

If your new mailing address is the same for which the loan has been taken, you may change the address in either of the following ways:

• You can visit us in person at your nearest Axis Bank Loan Center along with an original and self-attested copy of your new address proof and photo identity.
• By using Axis Mobile App > Menu > Insta Services.

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 for check the charge applicable for the foreclosure .

Property papers will be handed over to you at Axis Bank Loan center within 15 days from the date of repayment of all dues.

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 existing 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.

The Reserve Bank of India (RBI) vide its circular no DBR.DIR.BC.No.14/13.03.00/2019-20 on “External Benchmark Based Lending” dated September 04, 2019 and RBI vide circular no. DBR. Dir. No.85/13.03.00/2015-16 on “Interest Rate on Advances” dated March 03,2016 , updated as on September 04,2019 has advised to link all new floating rate personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises extended by banks with effect from October 01, 2019 to external benchmark which can be one of the following:

• Reserve Bank of India policy repo rate
• Government of India 3-Months Treasury Bill yield published by the Financial Benchmarks India Private Ltd (FBIL)
• Government of India 6-Months Treasury Bill yield published by the FBIL
• Any other benchmark market interest rate published by the FBIL. In line with the above circular, Axis Bank has adopted Repo rate as the external Benchmark lending rate with effect from October 01, 2019.

No, Repo Rate is being determined by Monetary Policy published by Reserve Bank of India

All floating rate loans sanctioned by the Bank with effect from 1st October 2019 are linked to the REPO rate. The rate of interest offered to you for your loan shall be the REPO rate plus spread. Any movement in the REPO rate shall result in your loan being reprised accordingly. For Bank level: - REPO rate would be published on a monthly basis.
For customer level: REPO rate would remain the same till REPO rate reset date. The reset frequency for mortgage loans linked to REPO rate would be once in three months or as decided by the Bank, whichever is earlier. The Bank shall have absolute right to decide and apply the spread over the Repo Rate, ”Spread” shall consist of credit risk premium (which is subject to change in case there is substantial change in your credit assessment as agreed in the loan agreement), operating costs and other costs. The spread will be reset periodically once in three years from the date of first disbursement. Your credit risk premium shall be reviewed by the Bank at regular intervals and shall undergo a revision in case of a substantial change in your credit assessment.

All floating rate loans will be linked to REPO rate. The rate of interest offered to you for your loan shall be the aggregate of REPO rate plus spread. It may be noted that the REPO rate would be reset every three months or as decided by the Bank, whichever is earlier.
Further, the Bank shall have absolute right to decide and apply the spread over the REPO rate, ”Spread” shall consist of credit risk premium (which is subject to change in case there is substantial change in your credit assessment as agreed in the loan agreement), operating costs and other costs. The spread will be reset periodically once in three years from the date of disbursement. Your credit risk premium shall be reviewed by the Bank at regular intervals and shall undergo a revision in case of a substantial change in your credit assessment.

Bank will publish the REPO rate every month on a pre-announced date. The REPO rate applicable to you would be the prevailing repo rate for that month.
For all loans linked to REPO rate, the reset frequency would be three months or as decided by the Bank, whichever is earlier.

Yes, you can at mutually acceptable terms with the Bank.

Banks can specify dates of interest reset which will be linked to either the date of first disbursement or date of review of MCLR/ REPO rate. The MCLR/ REPO rate prevailing on the day the loan is disbursed will be applicable till the next reset date, irrespective of the changes in the MCLR / REPO rate in the interim. For all loans linked to REPO rate, the reset frequency would be three months or as decided by the Bank, whichever is earlier. For example: the Home Loan/ LAP loans disbursed in the month of November 2019, would be due for reset in the month of February 2020 similarly all such loans disbursed in the months of December 2019 would be due for reset in the month of March 2020 and so on, unless there is a change in the Bank’s guidelines in which case the reset would occur as and when there is such change in the Bank’s guidelines.

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.

The Bank will inform you if there is a change in rate of interest due to a reset of the REPO rate as and when such change is affected in your loan account via SMS alert on your registered mobile, The consequential change impact would initially be made to the loan tenure i.e. the loan tenure will be increased; however if maximum tenure of the loan has already been availed, then the EMI would have to be modified and the revised EMI will be intimated to you

All existing loans linked to Base Rate/ MCLR will continue till its repayment. All existing Borrowers will however have the option to shift to the Repo Rate linked loan at mutually acceptable terms. Thus, in case of partly disbursed loans, for subsequent disbursements, the Base Rate/MCLR will continue to be applicable, provided the Borrower does not exercise the option to move to the Repo Rate linked loan at mutually acceptable terms

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

For all new loans sanctioned from October 1, 2019, the Bank has discontinued offering loans linked with Base Rate/MRR/BPLR/MCLR. However, the existing loans will continue on the respective BR/MRR/BPLR/MCLR till its repayment, provided the borrower does not exercise the option to move to the Repo Rate linked loan at mutually acceptable terms

For changing from existing bench mark rate of BR/MRR/BPLR/MCLR to Repo Rate based benchmark rate, the customer will be required to visit the nearest loan center, execute an agreement for conversion into Repo Rate based benchmark.

If customer is on MRR/BPLR/Base Rate/MCLR, customer can request to move to Repo Rate by paying an administrative fee to the Bank. Hence, the benchmark rate and spread might undergo a change as per the customer’s request

No, there is no option to move back from REPO RATE to Base rate/BPLR/MRR/MCLR

YES, Base rate/MCLR will be reviewed by the Bank from time to time and it may or may not change

Applicable REPO RATE for each month will be updated on Axis Bank Website

You will come to know through our Website / SMS / Email/ letter as deemed fit

Customers will have the option to get the disbursement either on MCLR or Repo Rate

All fresh loans disbursed in a particular month shall be linked to that month’s REPO RATE, irrespective of the month of sanction. Example –Sanction Month – October, Disbursement month- November. Applicable REPO RATE- November REPO RATE

YES, you can continue as long as you want to continue on MRR/BPLR/Base Rate/MCLR. It will be converted to REPO RATE only once you request to do so

The provision IT Certificate would be generated as per the prevailing Repo Rate

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:

1. 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.
2. 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 to your operative account.
3. 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.
4. Excess amount equal to (=) or greater than (>) foreclosure / pre-closure amount : In case no instructions are placed by you at the Loan Centre / Phone Banking within 3 working days from the date of credit in Loan account and:
1. Excess amount is equivalent (=) to the foreclosure amount, Loan account will be proactively closed by the Bank.
2. Excess amount is greater than (>) the foreclosure amount, adjustment in Loan account would be as follows:
1. If excess amount is up to INR 20,000, Loan account would be closed by the Bank and after closure, excess funds would be credited to the Loan repayment account.
2. If excess amount is greater than INR 20,000, the Bank will connect with you telephonically for verification of payment. Alternatively, you may connect with the Bank on 18604195555 to confirm the credit adjustment in your Loan account.
5. Excess amount less than (<) the foreclosure amount: In case no instructions are placed by you at the Loan Centre / Phone Banking within 3 working days from the date of credit in Loan account, then excess amount will be adjusted against the outstanding principal, leaving an amount equivalent to one EMI for forthcoming EMI presentation. However, in case you would like the entire amount to be adjusted against the outstanding principal, please place a request at Phone Banking / Loan Centre at the earliest.