Axis Bank has lowered its rate for a home loan under Rs 30 lakh by 30 basis points (bps) to 8.35 per cent for the salaried and to 8.4 per cent for the self-employed.
A loan under Rs 30 lakh comes under the definition of affordable housing, where borrowers get a subsidy of Rs 2.67 lakh a year.
The private lender’s move is in response to State Bank of India (SBI) cutting its rates by 25 bps to 8.35 per cent early this month.
SBI’s move was followed by ICICI Bank and HDFC; they cut to match its revised rate but only for salaried women; their rate is 8.4 per cent for salaried males. With around 26 per cent market share, SBI is the biggest in the home loan segment.
SBI’s move was followed by ICICI Bank and HDFC; they cut to match its revised rate but only for salaried women; their rate is 8.4 per cent for salaried males. With around 26 per cent market share, SBI is the biggest in the home loan segment.
Axis’ revised 8.35 per cent for the salaried does not differentiate between men and women.
“There is a large, genuine and mostly unmet need for affordable housing,” says Rajiv Anand, its executive director. Home loans were 44 per cent of Axis’ retail (to individuals) loan book of Rs 1,67,993 crore at end-March.