- Axis Bank launches QuikPay Home Loan; An Industry-First Reducing Monthly Instalments Plan that Offers Big Savings to Home Buyers
· Customers to save on interest by repaying higher principal every month in a structured manner
· With QuikPay Home Loan, customer to save ~Rs 11.7 lacs on an Rs. 50 lac loan for 20 yrs
· Instead of EMIs (equated monthly installments), the customer will pay reducing monthly installments
Axis Bank, the country’s third largest private bank, today launched ‘QuikPay Home Loan’, a first-of-its-kind home loan offering that will let home buyers save big on the interest amount component of the loan. Essentially, as against the industry norm, QuikPay Home Loan will offer an alternative repayment structure, wherein the customer repays an equal amount of principal every month along with interest on the outstanding balance. Thus an equated principal amount combined with reducing interest amount component will lead to reducing monthly installments. As a result, there will be an overall reduction in total interest amount component paid over the entire tenure of the home loan, thereby benefitting the customer.
Instead of EMIs (equated monthly installments), the customer will pay reducing monthly installments. While the initial installments will be higher (than the EMI on the same loan amount for the same tenure), the installment amount keeps reducing throughout the loan tenure.
Speaking at the launch, Rajiv Anand, Executive Director (Retail Banking), Axis Bank, said, “For the benefit of our customers, we have launched QuikPay Home Loan, which is an innovative product that will reduce the overall interest burden on the borrower. We are confident that this unique concept of ‘reducing monthly installments’, along with big savings on interest, will be an attractive proposition for home buyers.”
To illustrate the offering, let’s consider a typical home loan of Rs. 50 lacs for 20 years at 9.00% pa. This loan will have a total interest outgo of Rs. 57.96 lacs over 20 years for the customer. However, with Axis Bank’s QuikPay Home Loans, for a loan of Rs. 50 lacs for the same tenure, even with a slightly higher annual rate of interest of 9.20%, the overall interest outgo will be only Rs 46.19 lacs, thereby resulting in an overall saving of Rs 11.77 lac for the customer.
Refer to the annexure for a detailed comparative break-up of the loan repayment schedule.
About Axis Bank:
Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture, and Retail Businesses. With its 3,882 domestic branches (including extension counters) and 12,660 ATMs across the country as on 30th September 2018, the network of Axis Bank spreads across 2,269 cities and towns, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Bank also has ten overseas offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai and Colombo; representative offices at Dubai, Abu Dhabi, Sharjah and Dhaka and an overseas subsidiary at London, UK.
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