Axis Bank will be offering its new home loan customers an option to reduce their principal amount on a monthly basis, in departure from the current system wherein the lion's share of repayment initially is the interest component.
By reducing the principal with every month's repayment, the gross amount repaid by a borrower during the duration of a loan will also go down as the interest outgo comes down. However, the interest outgo for a borrower has been kept at a higher level of 9.05-9.25 percent as against 8.85- 9.05 percent for the older product.
Axis Bank is the third largest private sector bank in India. The bank offers the entire spectrum of services to customer segments covering Large and Mid-Corporates, SME, Agriculture and Retail Businesses.
