Axis Bank, one of India’s largest private sector banks, has announced the launch of a 30 year ‘Asha Home Loan’ product aimed at the lower income segment of the population.

The Asha loan – ‘asha’ meaning ‘hope’ in Hindi – marks the 20th anniversary of Axis Bank.

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It is thought for first time buyers with low revenues, allowing them to base their loan on family income, from INR8,000 ($133.81) per month. "The customers can pool their family income instead of depending on their individual income only," the bank stated.

The product offers loans from INR100,000 to INR1.5m in small towns (counting less than 1m people) and up to INR2.5m in larger towns (where the population exceeds 1m).

Jairam Sridharan, Axis’ head of consumer lending and payments, said: "We see tremendous potential in the affordable housing segment.

"The customers having lower level of income and aspiring to own their first house in the peripheral areas of Tier-I cities (large cities including Delhi and Mumbai) or within Tier-II and Tier-III cities have largely remained untapped."

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The Asha Home Loan will be available in both floating and fixed rate options to salaried and self-employed Indian residents. It can be obtained for new, resale, ready, under construction property, or for the purchase of a plot and the construction of a house on it.

Axis Bank estimates that the overall urban housing shortage is 19,000 units, out of which more than 90% of the demand is from the lower income segment and below.

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