Axis Bank's new home loan comes with built-in EMI waiver

Axis Bank yesterday launched a home loan product with a built-in EMI waiver scheme under which the last 12 installments would be waived off by the bank, if the customer stayed with it for at least 15 years.
 
There are no discounts on the interest rates for this product, though.

"The product, called 'Happy Ending Home Loan', is being offered at the same rates as a regular loan and will be applicable to new customers under the floating rate option.
 
"The EMI waiver will be offered to all loans with an initial tenure of 20 years or more that cross their 15th year," the bank said in a statement.

The product, would be available to new customers, who would get 12 EMIs or equated monthly installments of loan waived off with a 15-year or higher tenure if they made timely EMI payments.

The new product is aimed at rewarding customers who paid their EMIs on time.

The scheme is targeted at new customers but could be availed by existing borrowers if they go through a process of reapplying for the loan, which would cost them the existing processing fee.

For a customer availing a home loan for Rs50 lakh at 11 per cent floating rate, the EMI per lakh of loan size would work out to Rs1,032. For a customer taking a 'Happy ending home loan,' the EMI waiver would be worth up to Rs6.19 lakh.