Cibil Score for Axis Bank Home Loan


Cibil Score For Axis Bank Home Loan

 
 

The CIBIL score is most important deciding factor of your axis bank home loan worthiness. If your cibil score is less than 650, your axis bank home loan application may face negative decision. The score is calculated based on your track record related to credit card bill payment, bank account statement, existing loans or liabilities, loan repayments and how many times you have applied for a home loan in the recent past. The score, which is provided on the scale of between 300 and 900 points, tells a bank how likely you are to pay back the loan based on your past repayment behaviour. The higher cibil score increases your chances of getting your loan application approved.

As mentioned before, the CIBIL Score plays an essential role in determining your eligibility criteria for Axis Bank Home loans. CIBIL or Credit Score is a three digit numeric summary of your entire credit history, maintained by the Credit Information Bureau India Limited (CIBIL). The score is prepared based on the information provided in your Credit Information Report and ranges from 300 to 900.

Banks normally check the credit score of their customers before approving a loan because it acts as an indicator of the credit worthiness of a customer. If the credit score of a customer is low, banks would not easily consider providing a loan to that customer. If track record of payments is poor, debt records or delayed scots etc. will invariably damage the credit score of every applicant. The customer’s repayment history has a major impact on the credit score. Therefore, it is essential to ensure that bills are cleared in a timely manner so that CIBIL score is not adversely affected. Further, any individual who applies for several credit cards and multiple loans will subsequently expose himself to greater risk leading to degradation of their credit worthiness. Every time a customer applies for a credit card, the banks enquire into his / her CIBIL report. As a result, the individual’s credit score will be affected negatively if there are multiple enquiries.

Advantages of Axis Bank Home Loan

Longer Repayment Period and Low EMIs

The Repayment Periods for Axis Bank Loan is upto 30 years. If you want to pay lower EMIs, you can opt for longer tenures. If you can repay faster, you can choose shorter tenure and pay higher EMIs.

Doorstep Service

Axis Bank gives you the ease and comfort of getting a loan right from your home. The bank’s loan agents will come to your home and explain all the details of the loan and scheme type that suits your needs. The bank provides doorstep service which means that you don’t have to go to the bank again and again to get your home loan.

Simple Documentation & Approval

The list of documents that are required for the loan is available on the bank’s website. You can easily apply online, get your documents ready and verified by an agent, and get your loan approved without any hassle.Hence, with the online application, you can simplify the loan application process and documentation by keeping all documents in place and enjoy your loan faster.

EMI Discounts

There is an offer of EMI waiver for 12 months. This offer is valid for Six months are waived on completion of 10 years, and another 6 months on end of 15 years. So, to avail this waiver offer, you must not prepay the loan within 15 years. For those with lower repayment periods, this offer is not valid.
 

Disadvantages of Axis Bank Home Loan

Higher Processing Fees

The processing fees for the Home Loan is 1% of the loan amount with minim Rs. 10,000. This is deemed to be very high when compared to other home loans which have minimum processing fees of Rs. 5,000. There might be some hidden costs included in the same by the Axis Bank.

Poor Customer Service

The customer service is considered poor by those customers who are not eligible for the loan. Since the loan eligibility is the main criteria and many customers who didn’t meet the requirements of the Axis Bank experienced poor service of no response regarding their application. The case is not true for the customers with good credit score and documentation. Also sometimes, loan disbursal is pending from the bank even after paying the application fees, and sanction letter are provided. There are some cases where the customer care didn’t respond to those customers regarding further disbursal of the loan. This might be due to some communication gap between different departments regarding vital information about the process.

Beneficial only for Axis Bank account holders

The biggest catch of the Axis Bank Home Loans is that existing bank account holders of Axis Bank can easily apply for a home loan by just contacting their relationship manager. The processing of the loan is faster for them. But for other customers, the approvals and additional verifications may take much time for credit history and other documentation. Hence, it is advised to have a bank account with Axis Bank to avail faster home loan.


Loan Amount

You can get the minimum loan amount of Rs.3 lakhs, and maximum limit is not pre-defined. The maximum loan depends on your requirement, repayment capacity and the type of home loan you choose from the available schemes of Axis Bank. You can expect loans above Rs.75 lakhs can also be availed from Axis Bank.

Interest Rate

The interest rates of Axis Bank are linked to MCLR. As per the information provided by Axis Bank, the interest rates start from 8.35%. However, the interest rates are related to MCLR in different range for the other kind of customers. Moreover, with many schemes of Axis Bank, the interest rates also differ with the kind of scheme you have applied for and eligible to. The current MCLR is 8.15%.

Ease of Processing

The loan processing is at your doorstep with the loan executive visiting your home for the documents and verifications. As a preliminary check, you can fill in the online application and check your eligibility for your profile.So that when you approach the loan executives you can easily negotiate to the maximum eligible amount. In many cases where the customers who qualify for higher amounts got approval for the lower loan amount.

This margin is due to the further verifications of property and other income related factors including CIBIL score. It is advisable to maintain your CIBIL score higher to get easier eligibility. And the existing bank account holders of Axis Bank and employees of Axis Bank can get their processing faster due to less need for documentation and verification is simpler through their available details.

Post Disbursement Service

Regarding the post disbursement service, after the loan amount is disbursed there are some discrepancies in the EMI payments. Some customers have experience of higher EMIs than that mentioned in the sanction letter. The difference in sanctioned EMI and actual payable EMI is due to some hidden costs.

Fees and Charges

The processing fees are 1% of the loan sanction amount which has a minimum non-refundable fee of Rs. 10,000 which is higher than that of the banks and housing finance company. The prepayment charges are Nil for floating rate loans and fixed-rate loans there is a penalty of 2%. The prepayment charges are similar to other banks and housing finance companies.

Turnaround Time

The turnaround time for the loans depends on the profile of the applicant. If the applicant is credible for home loans. According to some applicants, the fastest approval can be in 15 days, and it might extend upto months time. As the complete process takes time for application, support, sanction and disbursal, we can see an average turnaround time of more than 15 days for any applicant.For fast forward loans, the loan approval can be within 15 days with all documents and conditions cleared.

 
 

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