Axis Bank launches special home loan scheme for self-employed
Quotes

Axis Bank launches special home loan scheme for self-employed

Last Updated: Tuesday, April 2, 2013, 17:24
 
 Comment 2
 
Axis Bank launches special home loan scheme for self-employed
Mumbai: The third largest private sector lender Axis Bank Tuesday launched a dedicated home loan product for the self-employed.

At 1 percent above the base rate to start with, borrowers will pay higher than the ones in the salaried class, but lower than the going rates in the market, Axis Bank's head for consumer lending and payments Jairam Sridharan said.

"The self-employed category is definitely riskier than the salaried class. However, we have a clause under which prompt payment will reduce the interest outgo and get a self-employed borrower at par with a salaried one in five years," he said, adding the initial rate for such borrowers will be 11 percent.

The interest rate will get reduced by 0.25 percent each in three phases at the end of the second, third and the fifth year, he said, adding, at 0.25 percent over the base rate, a self-employed person will be at par with a salaried borrower by the fifth year.

The bank is primarily targeting traders and small businessmen, Sridharan said.

He said over half of the country is self-employed and this segment faces trouble getting bank loans, forcing them to approach NBFCs and pay higher interest rates.

At present, the borrowers from this class build a good credit history in two-three years and migrate to lower priced home loans from a bank, he said.

However, he conceded that the home loan segment is witnessing a dip in growth due to overall troubles in the economy, but added it continues to grow for his bank without giving any figures, citing pre-results silent period.

PTI



First Published: Tuesday, April 2, 2013, 17:24


Comments


comments powered by Disqus
Top 5 anticipated luxury cars of 2015
Top 5 anticipated luxury cars of 2015
Top 5 anticipated smartphones of 2015
Top 5 anticipated smartphones of 2015
World Economic Forum 2015
World Economic Forum 2015
G20 Summit 2014
G20 Summit 2014
2014`s Top People in Business: Fortune
2014`s Top People in Business: Fortune

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved