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India's third-largest private lender Axis Bank has launched affordable housing loan product to “reward” customers with regular repayment behaviour helping them reduce EMIs by up to 12 months.
'Shubh Aarambh' home loans is the second product in affordable housing segment after 'Asha' home loans, which was launched in April 2014. Asha home loans were offered to the informal segment customers.
Asha home loans have seen disbursal to about 35,000 customers, accounting for 4-5 percent of its home loan portfolio, which stands at about Rs 78,000 crore.
Under this new offering, where the customer with regular repayment gets 12 EMIs waived — 4 EMIs each after the fourth year, eighth year and the twelfth year from the date of the first disbursement. The effect of EMI waiver shall be given in the form of reduction in tenure, the bank said.
Interest levied under the scheme will be the standard 8.35 percent charged to all home loan customers.
Rajiv Anand, Executive Director – Retail Banking, Axis Bank, said, "We want to reward good customer behaviour… Through these products we aim to provide further value addition to our customers in a highly competitive environment and at no incremental cost. This would also encourage regular repayments by the customer."
The loans can be used to purchase an under construction/ready/resale house, self-construction and plot plus construction. Customers also have the option to transfer any existing home loans to Axis Bank without any additional cost.
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