Axis Bank follows ICICI, HDFC; cuts home loan rate to stay in competition

For fresh loans up to Rs 30 lakh, rate will be 8.35% for salaried class & 8.4% for the self-employed

After HDFC Bank and ICICI Bank, lender Axis Bank has cut interest rate on home loans by 30 basis points, increasing competition in affordable housing finance space.

For fresh loans up to Rs 30 lakh, the new rate will be 8.35 per cent for salaried class and about 8.4 per cent for self-employed borrowers. 

Loans between Rs 30-75 lakh will attract 8.65 per cent interest rate for salaried employees and 8.7 per cent for self-employed people. 

The revised rate will be available with effect from May 16, 2017, Axis Bank said in a statement.

Home loans had 44 per cent share in retail loan book of Rs 167,993 crore at end of March 2017.

To promote affordable housing, ICICI Bank and HDFC Bank reduced their interest rates by up to 30 basis points on Monday for loans of up to Rs 30 lakh.

Last week, country’s largest lender State Bank of India (SBI) reduced rates on loans for affordable homes by up to 25 basis points offering a lower rate of 8.35 per cent to new women borrowers. With around 26 per cent market share, SBI is also the biggest player in the home loan segment.