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 a Rs. 50 lac loan for 20
yrs
· Instead
of EMIs (equated monthly instalments), the customer will pay reducing monthly
instalments
Mumbai, December 12, 2018: 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 instalments. 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 instalments), the
customer will pay reducing monthly instalments. While the initial instalments will
be higher (than the EMI on the same loan amount for the same tenure), the
instalment 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 instalments’, 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 a 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.
Axis Bank
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