Axis to offer home loans at 8.25% fixed rate for two years

MUMBAI: Two months after it launched the 8 percent home loan offer, leading private sector lender, Axis Bank on Tuesday came with a special scheme to give home loans at 8.25 percent fixed rate for the first two years irrespective of loan amount.

This scheme is open till March 31, 2010. After the offer period, floating rate of interest will be applicable based on the mortgage reference rate.

For loans upto Rs 30 lakhs, rates will be MRR minus 3.5 percent, while for loans above Rs 30-lakh, the applicable rates will be MRR minus 3 percent, the bank said.

"The bank decided to launch the scheme--Power Advantage Home Loan--based on extensive interactions with our customers and market feedback," Axis Bank's president-Retail Banking, Manju Srivatsa said.

"We feel that this is the right time to launch the Power Advantage Home Loan scheme. This expands our home loan portfolio, enhances our product offerings and reiterates our commitment to help home buyers in their desire to have a home of their own," Srivastava said.

In November, the bank had launched Power Plus Home Loans at an interest rate of 8 percent for the first year and applicable floating rates later taking a cue from country's largest lender, State Bank who first launched with 8 percent home loans.