Matching the interest rate provided by its rivals, Axis bank has announced deduction of 30 base points in its interest rate of home loans worth upto ₹30 lakhs. This was done following the recent announcement by HDFC and ICICI bank. The standard home loan interest rate for small houses now remains 8.35% for all the major banks.
The slight twist by Axis bank states that the bank will be charging 8.35% from the salaried people and at the same time, self employed professionals will have to pay 8.40% of interest on their home loans worth upto 30 lakhs. For loans above ₹30 lakhs and below ₹75 lakhs, Axis bank will charge an interest rate of 8.65% for salaried employees and 8.70 percent for self-employes professionals.
Speaking at the announcement, Rajiv Anand, Executive director – Axis bank said that there is a large demand of affordable housing. He hailed government’s efforts and initiatives to make housing reachable to everyone and added that banks are the mainstream channels for credit to buy homes. This trend of reducing interest rates will help more customers realise their dream of buying houses, which will be beneficial for banks in the longer run.