Axis introduces home loan scheme for people earning below Rs 10000
A senior bank official says that Axis Bank has launched a home loan scheme for the people whose per month income is less than Rs 10,000 per month. The bank is looking at disbursals of up to Rs 1,000 crore in a year’s time
However these loans will have higher risk due to as the borrowers have low income per month therefore bank will charge interest at the rate 10.75 percent which is higher than in other schemes.
Mr. Jairam Sridharan, Axis Bank head for consumer lending and payments, says that the majority of banks deals only with people having per month income more than Rs.25,000. The market requirements drove us to launch scheme like this which will cater to a niche segment.
He also added that there are 60 lakh households in the segment with over Rs 25,000 income per month in urban areas but there are2.5 crore households in the Rs 10,000 to Rs 25,000 income segment and those people do not have many options for a home loan. He also says that they plan to disburse around Rs 500 crore to Rs 1,000 crore of loans during this year.
In this scheme, a salaried person in the targeted income will get the loan at 10.75 percent while a self-employed person could get it at 11 per cent interest. The bank usually lends at base rates of 10.25 per cent to 11.25 per cent
He also added that the bank has prepared a customized solution which will help to choose the suitable borrowers in the segment. The scheme was launched on 20th Anniversary of the bank’s foundation and this scheme is expected to help the bank to achieve its priority sector lending (PSL) targets.
It is noteworthy to mention that the only big players present in this segment are Dewan Housing Finance and some other NBFCs with same scheme.
Source: mydigitalfc.com
Axis Bank, Bank, dewan housing finance, Home loan scheme, Interest rates, Jairam Sridharan, Loan, NBFC, Priority sector lending, PSL
