Asha Home Loan - Axis Bank

Axis Bank Asha Home Loan

Asha Home Loan is a affordable home loan scheme offered by Axis Bank which is designed to cater borrowers who are earning low-income and thinking about buying their first home. Under Asha Home Loan, you can avail as high as up to Rs. 28 Lacs for tenure up to 30 years.

Utilise the funds to purchase a ready built or under construction house/flat, constructing the house on self-owned land, purchase a plot and built the house on it, or even to repair/improvement of existing house/flat, where the property size should not be less than 200 square feet in NCR and MMR locations and 300 square feet in other locations.

Benefits of Asha Home Loan

  • Avail home loan even if you get the salary in cash.
  • Avail as high as up to 90% of the property value.
  • 12 EMI waived off - If you pay your EMI regularly where default cases is not more than 3 times of maximum 90 days period each instance, in the entire loan repayment period, then Axis Bank offers you waiver of 4 EMIs at the end of 4th, 8th and 12th year where the minimum tenure for home loan should be 20 years.
  • Pay your entire loan amount as quick as within 48 months under Part-payment facility.
  • Facility of partial disbursement, in case of construction depending upon the requirement.

Who can apply?

Axis Bank offers Asha home loan to each and every kind of borrower, be it salaried, self-employed professional or a self-employed businessman. The minimum monthly income of a borrower living in tier I city should not be less than Rs. 10,000 per month and if applicant is living in tier II city, then it should be at least Rs. 8,000 including the income of all the co-applicants.

How much can you borrow?

Under Asha Home Loan, you can avail as low as Rs. 1 Lac to as high as Rs. 28 Lacs. However, borrower has to offer margin money out of his/her own funds, where minimum margin amount should be equal to 10% of the loan amount.

You can avail up to Rs. 28 Lacs if you live in a Tier I city and maximum up to Rs. 20 Lacs for Tier II cities.

Interest Rates & Charges

Asha Home Loan comes with option to choose either Floating Rate of Interest or Fixed Rate of Interest. The floating interest rate ranges from 9.75% to 10.50% per annum and the fixed interest rate ranges from 12% to 12.50% per annum.

The floating interest rate applicable to salaried applicant is 9.75% per annum for vanilla variant and 10.50% per annum for non-vanilla variant. Whereas the floating interest rate applicable for self-employed applicants is 10% per annum for vanilla variant and 10.50% per annum for non-vanilla variant.

The interest rate is linked to 6 months MCLR rate, which is currently equal to 8.65%. As for the applicable charges, please check the table mentioned below.

Type of Charges Amount Payable

Processing Fee

1% of the Loan amount

Min Rs. 10,000 (Rs. 2500 Upfront)

Foreclosure Charges

NIL

For Home Loan availed at Floating Interest Rate


2% of the principal outstanding

For Home Loan availed at Fixed Interest Rate

Part-Payment Charges

NIL

For Home Loan availed at Floating Interest Rate


2% of the principal outstanding

For Home Loan availed at Fixed Interest Rate

Default Charges/Penal Interest

2% per month

Interest Switch Charges

1% on the outstanding principal amount or min Rs. 10,000

Floating to Fixed Interest Rate


2% on the outstanding principal amount

Fixed to Floating Interest Rate


0.5% on the outstanding principal amount or Min Rs. 10,000.

High Interest Rate to Low Interest Rate

EMI Bounce Charges

Rs. 500 per instance

Payment Instrument Swapping Charges

Rs. 500 per instance

Duplicate Amortization Schedule

Rs. 250 per copy

Duplicate Interest Certificate

Rs. 250 per copy

Necessary Documents

    • Passport Size Photographs
    • An valid identity proof such as Aadhar Card, Passport, PAN Card, Voter ID card, Driving License or Employee ID.
    • A valid address proof such as electricity bill, landline bill, Piped Gas Bill and utility bill etc, or rent deed if renting the place, where the attached proof should not be more than 2 months old.
    • A salaried applicant would require last 3 months’ salary proof such as salary slip/certificate or Form 16 along with last 6 months bank statements or passbook statement copy.
    • A self-employed applicant would have to provide last 2 years’ Income Tax Return along with income computation (Profit & Loss Account) certified by Chartered Accountant, and last 6 months’ bank account statement for personal as well as business account.

Things to Consider Before Applying

    • Asha Home Loan availed at fixed rate of interest should not have more than 20 years repayment period.
    • If you do not live in tier I cities, then you cannot avail more than Rs. 20 Lacs.