Axis Bank launches new home loan product that waives final year EMIs

Axis Bank launches new home loan product that waives final year EMIsAxis Bank, India’s third largest private sector lender, has announced the launch of a new home loan product, called 'Happy Ending Home Loan', which rewards for loyalty.

Under the 'Happy Ending Home Loan' scheme, the bank will write off the last 12 instalments if the customer stays with it and makes regular payments for at least 15 years.

The private sector lender said that it would offer the EMI waiver to all loans with an initial tenure of twenty years or more that spans more than 15 years. However, the new product doesn’t offer any discounted interest rates.

Currently, Axis Bank is offering home loans of up to Rs 25 lakh and up to Rs 75 lakh at 10.75 per cent to 11 per cent interest rates respectively.

The bank said in a statement, "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.”

Jairam Sridharan, head of consumer lending and payments at Axix Bank, said that they launched the new product to reward customers who pay their EMIs in good time.

However, market analysts are seeing the product as Axis’ attempt to cope with the tough competition in a market where home loans have become tremendously handy.