5 Sep 2012, ET Bureau.
MUMBAI: Private sector lender Axis Bank has launched a new housing loan scheme that will waive off the last 12 equated monthly installments (EMIs) for borrowers who have been diligently repaying their loan.
Termed Happy Ending Home Loan, the scheme will offer interest rates applicable under the floating loan option. The EMI waiver will be offered to all home loans that have an initial tenure of at least 20 years and cross their 15th year with the bank.
In other words, if you decide to switch your lender or prepay your loan before the completion of this 15-year-period, you will not be entitled to this benefit. Also, as mentioned earlier, only those borrowers who have been discharging their EMI commitments on time will be eligible for the waiver.
According to an official release from the bank, a borrower with a floating-rate home loan of Rs 50 lakh and an interest rate of 11% will be able to save up to Rs 6.19 lakh in form of the waiver.
All other terms and conditions will be similar to those of regular home loans.