How to Reduce Home Loan Interest Rate in Axis Bank?

We wanted to avail a home loan from Axis Bank, but we were worried about the interest rates. I found that the interest rate typically ranges from 8.75% p.a to 9.30% p.a. This fluctuates, depending on several factors, such as your credit score, repayment history, and so on. Since our credit score was just average, we wondered how to reduce home loan interest rate in Axis Bank. Then, my husband's friend, who is a bank employee, gave us some tips.

How to Reduce Axis Bank Home Loan Interest Rate?

If you have a good credit history, then it’s easier to reduce the interest rate. A good credit score ranges from 750 and above, in which the interest rate will be 8.75%. However, my husband’s friend shared some more ways to reduce the interest rate, which I have mentioned below.

Change Interest Pricing

We found that one can switch to a lower interest rate by paying a nominal fee plus GST to the bank. For this, both applicant and co-applicant have to visit the loan centre with their identity proof and can pay the fee either via cheque or DD.  After you pay the amount, you will receive an SMS in your registered mobile number. You can also view it through online banking or via Axis Bank mobile app.

Switch from Fixed to Floating Interest Rate

The friend explained that a fixed interest rate is generally higher than a floating interest rate. So, another way you can reduce the rate is by taking a floating interest rate. 

I hope it gives you an idea on how to reduce home loan interest rate in Axis Bank.

I’ve recently opted for a home loan from Axis Bank. Hence, I can assist you with some helpful suggestions regarding, how to reduce home loan interest rate in Axis bank. Axis Bank offers eligible customers housing loan options with interest rates starting at 6.90% p.a. on floating rate loans, and 12% p.a. on fixed rate loans

How to reduce Axis bank home loan interest rate?

• Change from a fixed to a floating interest rate: 

Axis Bank reduces home loan rates when you change the interest rates from fixed to floating. Fixed interest rates are often more expensive than floating interest rates.

• Maintain a good credit score:

   

Your credit score plays a crucial role in determining your home loan interest rate. A higher credit score generally translates to a lower interest rate. Make sure you pay your bills on time, keep your credit utilisation low, and avoid defaults or late payments to maintain a healthy credit score.

• Transfer loan to a new lender:

You have the option of moving your loan to a lender who is ready to offer you a favourable interest rate. It only needs a little bit of research and effort. The process of moving a mortgage from one bank or financial institution to another is comparable to applying for a new loan. 

Go over the loan's details, including the interest rate, processing costs, additional T&C, etc., and compare them to what you pay now. One thing to bear in mind when thinking about switching lenders is that you shouldn't do so if you intend to sell your home soon.

I hope this answer clarifies the query, of how to reduce home loan interest rate in Axis Bank. With the right approach, you can potentially save thousands of rupees on your home loan.

Read More: