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Home Loan Interest Rates

Home Loan Interest Rates FAQs

Home loan interest rates depend on various factors. At Axis Bank, you can choose between floating and fixed interest rates based on your preference. Click here to know more about interest rates on home loans.

Yes, Axis Bank offers both floating and fixed rates for home loan buyers. The fixed home loan rates remain constant or fixed throughout the loan repayment tenure. In comparison, floating home loan rates change with changes in the Bank's base or repo rate.

Home loan borrowers must calculate home loan interest rates or equated monthly instalments (EMI) to understand the monthly EMI payment amount better. This EMI or interest can be calculated manually or by an online tool.

The formula to calculate home loan EMI is as follows:

EMI= P x R x (1+R) ^N / [(1+R) ^N-1]
P= Principal loan amount
N= Loan tenure in months
R = Home loan interest rate

Alternatively, you can use the online Home Loan EMI Calculator to determine the interest you need to pay easily.

Floating interest on home loans fluctuates with policy rate changes made by the RBI. If the RBI increases or decreases the repo rate, makes vital policy changes, or there are market fluctuations, the floating rate changes.

The effective interest rate on a home loan is the actual interest rate a borrower must pay. The effective interest rate has two components – base rate and markup rate.

The base rate is the standing lending rate of the Bank and is the same for all retail loans. The markup rate is a small percentage added to the base rate, which varies for different types of home loans.

Key factors influencing home loan interest rates and EMI are:

  • Home loan tenure
  • Credit score
  • Job profile
  • Location of the property
  • Type of loan chosen
  • Repo rate
  • Loan-to-value ratio

If you have opted for a fixed interest rate, the home loan interest rate will remain fixed throughout the loan tenure. If you have opted for a floating rate, it will change as and when the RBI revises the repo rate.

Yes, besides the interest rate, you will have to pay certain fee or home loan charges which depends on the type of housing loan you opted for. These may include home loan processing fees of 1% of the outstanding principal amount with a minimum of ₹10,000 + GST as applicable. An upfront non-refundable processing fee of ₹5000 + GST must be paid at the time of application login.

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