Tag Archives: floating
Axis Bank Home Loan Interest Rate
Getting a good deal on your home loan is the toughest task for any consumer. Axis Bank home loan is a saviour in such a scenario, offering quick and easy options to buy your dream home. Their housing loans are designed in a way that perfectly suits the requirements of a modern home buyer; with features such as an option to choose from floating and fixed rate of interest, attractive interest rates, balance transfer facility, and doorstep service. Moreover, they are regarded as the best home loan providers in India, owing much to a myriad of additional features like flexible tenures, quick service and transparent processing. They even offer you pre-allotment booking finance for booking your dream home.
While deciding on a home loan, a major governing factor is the interest rate. A higher rate of interest means a higher EMI. Axis Bank home loan rates are the most attractive in the market, in an attempt to keep your EMI under your reach. Floating home loan rates range from 10.75% per annum to 12.00% per annum at present. As the rates tend to fluctuate, it is not easy to fix a monthly budget. However, floating home loan rates are at least 1% to 2% cheaper than fixed interest rates, thereby helping you save money in the long run. An alternative option is to go for a fixed rate loan, if you are unsure of market trends and want the security and certainty offered by a fixed rate. This way you need not worry about your budget being affected, since your loan interest rate is locked at a fixed value for a period of time. The current fixed rate offered by Axis Bank is 14% per year. You may switch between the two schemes of floating rate and fixed rate. Rescheduling of loan to a lower interest rate is also possible.
These home loans can be availed for both the purchase of land and construction of house on it, construction of a house on a plot already owned and purchase of a new house. They can also be availed for extension, renovation or repair of a house owned by the customer. Axis Bank also offers takeover of an existing home loan.
These home loans can be applied for a maximum of 85% of the property value in case of home loans and 75% of the property value in case the customer wants an extension, renovation or repair. These loans can be availed for a maximum tenure of up to 25 years. The bank even provides loan to NRIs for purchasing a ready to use residential property.
The attractive features of the Axis Bank home loans are not limited to the above. The bank charges a nominal processing fee of 1% of the loan amount. That is among the lowest in the market. Even getting yourself out of the loan has never been as easy as with Axis Bank. This is probably the most attractive feature of these home loans. Unlike other banks that levy a 2% early redemption charge, Axis Bank allows you to prepay the loan whenever you want. This really shows how much the bank values its customers.
If you are planning to buy your dream home, Axis Bank home loans is a one stop solution to all your needs. You definitely do not want to let go and end up paying more, turning your home loan into a nightmare.
Fixed Home Loans
Home is one of the basic necessities of life for every individual. People do all sorts of things to buy a home like working extra hard, doing overtime in offices, taking up part time jobs in their free time, and so on. However, not all are lucky enough to own a home with their limited incomes. But, in order to fulfill their dream of buying a home, people take loans from banks or other agencies. These days fixed home loans are becoming popular throughout the world.
The first and foremost thing that comes into the mind of a home loan seeking person is the interest rate. Some loan seekers often get confused between fixed interest rate and floating interest rate. Let us try to understand the difference between the two. In case of a fixed home loan, the rate of interest remains fixed for the entire loan period. For example, if you take a home loan at 7% per annum for a period of 25 years, this interest rate will not change during entire 25 years. Whereas floating rates are directly proportional to the interest rate prevailing in the market. In other words, they keep on changing as per the market interest rate. People normally prefer fixed home loans due to the security provided by it. A fixed interest rate loan is suitable for persons with limited and fixed monthly income. However, the only drawback associated with it is that if interest rate comes down, the borrower still has to pay the same interest that was applicable at the time of taking the loan.
Further, in countries like Australia, where the mortgage interest rates are continuously showing an upward trend, people are finding fixed home loans more attractive and appropriate. This is because Australians consider things such as budgeting, lifestyle, economic instability, and changing interest rates, before going for a loan. With fixed loan, people know how much they have to pay each month and can plan their budget accordingly. While in floating loan, they become totally dependent on the ever changing interest rates and cannot do their financial planning in an efficient manner.
Some other benefits of fixed loan include peace of mind for future financial planning, lower interest rate than other type of loans, and surety about repayable amount. With each passing day, more and more people are turning to fixed term loans as it is a safe and secure option.
So, if you have finally decided to take a home loan, compare the interest rates of all types of loans. You can do this research by browsing different websites that specialize in home loans. You can also search the Websites of various government and private banks and compare the terms and conditions offered by them. Do not take hasty decision in this matter as it can affect your life and future planning in a big way. Whether this will be a negative affect or a positive affect, depends on how wisely you choose your loan.