After State Bank of India (SBI), ICICI Bank and HDFC, Axis Bank has decided to cut home loan interest rates by 30 basis points (bps) to 8.35 percent for loans up to Rs 30 lakh for the salaried segment borrowers.
Axis Bank rates are now the lowest in the industry as the State Bank of India, ICICI Bank, HDFC and LIC Housing Finance offer 8.35 percent to its women borrowers while the rest of the customers are offered home loans at 8.40 percent to boost affordable housing.
The revised rate will be with effect from May 16, the bank said.
For the self-employed segment, the loans up to Rs 30 lakh will be charged an interest rate of 8.40 percent.
On loans from Rs 30-75 lakh, Axis Bank will charge 8.65 percent to the salaried segment and 8.70 percent to self-employed borrowers. The rates for home loans over Rs 75 lakh are 8.70 percent and 8.75 percent for the respective segments.
For all banks, the final interest rates charged will be about an additional 20-60 bps (basis points) of marginal cost-based lending rate (MCLR).
Rajiv Anand, Executive Director, Axis Bank said: “There is a large, genuine and mostly unmet need for affordable housing and the government’s thrust and commitment towards this is noteworthy. The bank has been at the forefront of fostering an ecosystem for credit delivery to this segment and believes that the current downward revision in its rates will help more people realize their dream of buying a home."Earlier this month, SBI, which is also the country’s largest bank and has the largest home loan market share, started offering home loans up to Rs 30 lakh to salaried borrowers at 8.35 percent. For loans over Rs 30 lakh, the bank will charge 8.50 percent. It will continue to charge 8.60 percent interest on loans of over Rs 75 lakh.