Asha home loan has come in a time when the property rates are dwindling and finding an affordable home might be a possibility. Don’t we always end up questioning ourselves about the never ending cycle of rent? Asha home loans is a scheme, that might be the solution to your problem as here, you can obtain a home loan with a salary as low as Rs 8,000 p.m. This scheme aims at the low income group and you can get a home loan even if you get your salary in cash.
Want to know the scheme better?
Give a look to the following points for better understanding of the scheme.
1. The type of property that you can purchase
You can purchase a property that is ready or which is under construction. It can also be a resale property. The loan can be extended if you want to purchase a plot and construct a house on it or for constructing a house on a plot already purchased by you.
2. Your loan tenure
If you opt for fixed rate loans, it is the same as the regular home loan offered by Axis but the loan tenure cannot exceed 20 years. This reduces the total amount of interest that you pay as the tenure is less, this is good for you. But, this increases your EMI which might prove to be a burden if you are running on a tight budget. Otherwise, if you opt for a floating interest rate, it is higher than the other schemes offered by Axis bank. The maximum loan repayment period permitted is 30 years. This enables you to opt for a comparatively relaxed EMI but remember with a lower EMI comes huge amount of interest For example if you have a loan amount of Rs 10 Lakh with a fixed interest rate of 11.75% and a loan tenure of 20 years, then the total interest payable by you will be Rs 16,00,897 whereas for the same loan amount at a floating interest rate of 10% over a tenure of 30 years, the total interest payable by you will be Rs 21,59,258. So you can clearly see that for the very same amount, opting for floating interest rate actually increases the amount of interest you pay by Rs 5,58,361. (Read more about Fixed v/s Floating rate)
If your loan amount is up to Rs 20 lakhs, you need to just pay 10% of the property value and the bank funds the remaining 90%. For example if the cost of your property is Rs 20 lakh, you need to just pay Rs 2lakh and the rest 18Lakh will be handled by the bank. And if your loan amount is between Rs 20 lakhs to Rs 28 lakhs, then you have to pay 20% of the property value and the bank funds the rest. This is your go to scheme if you are looking for a small house or you want to renovate your home.
5. Big or small, a home is a home.
The scheme is applicable for properties starting from 300 (saleable) sq ft areas.
6. Your minimum combined income should be at least Rs 8,000 p.m
Now you can combine your income with your spouse, parents or children and collectively fulfill your dream. Low income is no more an obstacle as you can apply, if your individual or combined salary sums up to at least Rs 8,000 to Rs 10,000 depending upon your desired location.Now that we know what Asha home loans is, let us help you with the eligibility criteria for this scheme.
Wondering who can apply?
In general, eligibility for this home loan will be decided by Axis bank depending upon your application.
If you have a permanent government job or you are working in a reputed company
If your age at the time of loan commencement is at least 24 years and up to the age of 60 years or superannuation or whichever is earlier at the time of loan maturity.
If you have the salary slips of last 6 months.
Self Employed Individuals
If your age at the time of loan commencement is at least 24 years and up to the age of 65 years or superannuation or whichever is earlier at the time of loan maturity.
Documents you need, to get the process working
The interest rate table
Fixed rate of interest is 11.75% p.a If you are a new customer the above rates will be applicable to you. If you are an existing customer, then you will continue to operate on the base rate. You can also switch to the current MCLR system but we would suggest you to go through this blog before you make the switch. https://www.switchme.in/blog/2016/03/should-you-switch-your-home-loan-to-mclr/The best part about this scheme is your salary is no longer the deciding factor for you to be able to own a home because Asha home loan makes you eligible for a home loan with a salary of Rs 8,000 only. While other banks may turn you down for your low salary, through this scheme you now have a hope. The only thing that you should know is their floating interest rate is comparatively higher which might affect your monthly EMI’s. Overall this scheme is helpful for first time home loan borrowers and for people, who desperately need a home but are falling short on cash.
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