“Customers today are facing uncertainty about EMIs on their home loans, due to interest rate increases in the market. At Axis Bank, we want to offer the customer certainty about the EMI they need to pay for the entire life of the loan. ‘NISHCHINT’ offers that option to the customer at a very attractive rate,” said R. K. Bammi, executive director - retail banking, Axis Bank in a press release. Click here to Apply for Axis Bank Nishchint Home Loan

Under this scheme, home loan buyers can avail a loan at 11.75% per annum for the entire duration of the loan that is up to 20 years, says the release. Axis Bank will offer home loans to eligible buyers with a loan to value (LTV) ratio of up to 85% for a loan amount up to Rs 20 lakh. This means, you can get a loan of Rs 17 lakh to buy a property, valued at Rs 20 lakh.

However, LTV ratio is at 80% for any loan amount above Rs 20 lakh and that is with a pre payment charge of 2% of the outstanding amount.

Under its floating rate scheme, the bank currently offers around 10.75% for loans up to Rs 20 lakh. Its loan book stood at Rs 1.32 lakh crore, up 21% year-on-year for quarter ended June 30, 2011. Retail lending forms 20% of its loan book wherein home loans accounts for a majority chunk at 70%.

In the last couple of months, lenders have mostly come out with dual rate schemes. However, this Axis Bank scheme differs in nature as it has no dual rate component.

(Source - Moneycontrol)