Asha Home Loan

“A home is never small” ~ Axis Bank”

One of the key hurdles to purchasing a home of your own is amassing the pile of cash required for a down payment. By some guesstimates, it can take at least a few years to get your hands on a decent 10 to 15 percent. As the Reserve Bank of India introduced several new guidelines like lowering of interest rates and EMIs for housing loans, potential home buyers with less bucks in their account to put down for that hefty first payment, are now spoilt for reasonable choices.

Asha Home loan is a customized financial product explicitly made for Axis bank clients to fulfil their dream of owning a house. With a bunch of tailored options including the ambitious Asha Home Loan Scheme, it didn’t take the bank long to become one of the biggest players in the House Loan Business. And the reason why this scheme hit off with customers is that it plays to the tune of your career and monthly income purely based on your banking history and credit score.

Features & Benefits:

  • Purpose of Asha Home Loan: Asha home loan is your ticket to purchase a ready home or construct your own house. You can use it to buy a property under construction or a one put up for resale. Loan is also offered for plot purchasing and renovation of your current house.
  • Loan Term: 30 years with a higher eligibility.
  • Loan Sum: Minimum loan amount granted by Axis bank as per the Asha home loan scheme is one lakh. But you can avail up to ninety percent of the property price for loans up to twenty lakhs. You can apply for a maximum of 28 lakhs.
  • Affordable Interest Rates: Asha Scheme doesn’t believe in draining the borrower to the point of ‘peace of mind vs owning a house’.
  • Transfer your balance without stress: If you had already taken another house loan from another financier, you can easily consolidate it with the Asha home loan if you have an impeccable repayment track record.
  • Security: Rightful mortgage of the house or land to be bankrolled by way of depositing the title deeds.
  • Payout Procedure: The entire loan amount will be paid either in one go or partially, considering the requirement of funds for construction or purchase, as evaluated by Axis Bank. The money will be transferred directly to builder, seller (of house, materials etc.) or local development authority.

Asha Home Loan Eligibility & Documentation:

To avail Asha Home Loan, your joint family income need be only INR 8000 per month based on where you live. This is really nominal when compared to schemes offered by other banks.

PurposeSalariedSelf-employed/ Freelance Professional
Identity ProofPassport/ Driving License/ Employment Id Card (NREGA)/ Voters Id/ Adhaar Card/ PAN CardPassport/ Driving License/ Employment Id Card (NREGA)/ Voters Id/ Adhaar Card/ PAN Card
Address ProofPassport/ Driving License/ Employment Id Card (NREGA)/ Voters Id/ Adhaar Card/ Rental AgreementPassport/ Driving License/ Employment Id Card (NREGA)/ Voters Id/ Adhaar Card/ Rental Agreement
Income ProofSalary Slips, Income Tax Return PapersIT Returns, P & L accounts & B/S, Bank Statements for the last 6 months

Asha Home Loan Rate of Interests:

Fixed Rate of Interest for Asha Housing Loan is at 11.75 percent per annum.

Floating Interest RateBase Rate + Mark-upEffective Rate of Interest Per Annum
SalariedBase Rate + 0.60%10.45%
Entrepreneurs/ Freelance ProfessionalsBase Rate + 0.85%10.70%

Fees & Charges:

Charge DescriptionSum (INR)
Processing Charges or Admission FeeOne percent of the loan amount, not less than INR 10,000
Repayment Instruction/Instrument Return chargesINR 500 per case
Cheque/Instrument Substitution chargesINR 500 per case
CERSAI ChargesINR 500
Charges for issuing Copy of StatementINR 250 per case
Charges for issuing Copy of Amortization ScheduleINR 250 per case
Charges for issuing Copy of Interest Certificate (Provisional/Actual)INR 250 per case
Charges to get copy of title documentsINR 250 per document set
Charges levied for requests for copies of documents by the clientINR 250 per document set
Charges to issue Credit Bureau ReportINR 50 per case
Advance Payment Penalty for Fixed Rate LoanTwo percent of remaining principal sum that is prepaid
Fine for Late EMI PaymentINR 500 per cheque bounce and a punitive interest at the rate 24% annually i.e. 2% per month on the unpaid installment/s
Converting Fees (Floating to Fixed Rate)1% on the remaining principal (not less than INR 10,000)
Converting Fees (Fixed to Floating Rate)2% on the due principal sum
Converting Fees (Higher Fixed rate to Lower Fixed Rate)0.5% on due principal with minimum INR 10,000
Converting Fees (Higher Floating Rate to Lower Floating Rate)0.5% on due principal with a minimum of INR 10,000

Asha Home Loan New MCLR:

Fixed Rate of Interest for Asha Housing Loan by Axis Bank is at 11.75% per annum. Floating rate of interest is dependent on the Marginal Cost of Funds-based Lending Rate (MCLR) from April 1, 2016. The 6-month MCLR, which is the rate on which Axis Bank home loans are based, is 9.3% currently. The spread above MCLR on home loans is as below:

Customer typeFloating interest rate
Salaried9.95% (MCLR + 0.65%)
Entrepreneurs/Freelance Professionals10.15% (MCLR + 0.90%)