Axis Bank sweetens home loan scheme

Mumbai: To attract more number of consumers, Axis Bank has sweetened its fixed-cum-floating home loan offer. The scheme, known as the 'Power Advantage Home Loan' scheme, will allow customers to lock in their home loan rate at 8.25 percent for the first two years of the tenure followed by a floating rate. Two months ago, the bank had announced a scheme wherein the interest rate would be fixed at 8.0 percent for the first year followed by a floating rate. In the new scheme, after the first two years, the floating rate of interest would be applicable at Mortgage Reference Rate (MRR) minus 350 basis points (bps) for loans up to 30 lakh and MRR minus 300 bps for loans greater than 30 lakh. Mortgage reference rate is the basis for floating rates in a housing loan. The scheme is open till March 31, 2010 and the maximum tenure of the loan will be of 25 years.