Axis Bank Home Loan EMI Waiver Scheme

Axis Bank Home Loan EMI Waiver Scheme

With the aim of refraining its home loan customers from making a switch to other mortgage lenders that offer better deals on the table and increasing its overall home loan business by attracting new customers, Axis Bank came up with a new scheme labelled as ‘Happy Ending Home Loan’. Under the new Axis Home Loan product, the bank promises to waive off 12 EMI’s (equated monthly instalments) if a new borrower sticks with the bank for a period of 15 years, under a new floating rate option having a full tenure of 20 years or more.

Happy Aspects of the Happy Ending Home Loan

Axis Bank, ranked as the third largest private sector banking institution in India, has placed its bet for increasing the Axis Home Loan business on its relatively new and unique scheme, characterized by its inbuilt EMI waiver option.  As long as the borrowers service their EMI’s on time, the bank will waive off the EMIs of the last 12 months of the home loan tenure. Moreover, similar to the regular Axis Bank home loan products, Happy Ending loans are also backed by zero prepayment penalty.

As of now, this unique scheme is available at the same interest rates as the regular Axis Bank Home Loan Interest Rates and would only be applicable for new home loan customers opting for floating rates of interest. The EMI waiver is basically offered to all new home loans that have a minimum tenure of 20 years and have completed a period of 15 years with Axis Bank. Every customer, who has serviced the EMIs on time for this 15 year period, will be automatically entitled to receive the waiver benefit.

Whom will it actually make Happy?

Customers, before opting for the Happy Ending Home Loan, must look into the fine print of the scheme to avoid any unwanted difficulties later on. Instead of measuring this product on the scale of future benefits, one should ideally look into the present state. Interest rates are something that tend to take unexpected turns at any point of time in the future. Nobody can really apprehend their movement and know the direction of their movement way in advance. This is the reason why many Axis Home Loan customers prepay their debt before reaching the actual closure date. According to a statement of Axis Bank executive, borrowers prepay their home loans within the first 8-10 years of the actual tenure. In such a case, where repayment is made before the expiry of 15 years, opting for Happy Ending home loans wouldn't be a wise option. However, the borrowers planning on sticking with the bank for 15 years or more can choose to go with the unique Axis Home Loan product and reap its benefits.

The Final Word

This exclusive EMI waiver scheme is a perfect product from the bank’s perspective in terms of retaining old customers with a good repayment record as well as attracting new home loan seekers. However, from the customers’ point of view, this might be a good option if the accelerating rates of interest are not a concern and they plan on taking their loan up to its closure date.