India’s third largest private sector lender, Axis Bank, has
launched a new home loan scheme, Happy Ending, that waives off the
last 12 equated monthly instalments for borrowers who have been
repaying their loans regularly and on time.
The instalment waiver will, reportedly, be offered to all home
loans that have an initial tenure of at least 20 years and cross
their 15th year with Axis Bank.
The new Happy Ending Home Loan scheme aims to
offer interest rates applicable under the floating loan option. A
borrower with a floating-rate home loan of INR5m ($899,000) and an
interest rate of 11% will be able to save approximately up to
INR619,000 in form of the waiver.
Customers switching banks or prepaying their loans before the
completion of the 15-year-period will not, however, be entitled to
the Happy Ending Home Loan scheme.