Earning Rs. 10,000? You can still avail home loan. Axis Bank, a private sector lender on its 20th anniversary on Wednesday launched a home loan product for people earning as low salary as Rs. 8000. With this product the bank is targeting disbursals of up to Rs 1,000 crores annually”, says a senior bank official.
To reduce the risk, such borrowers have to pay a premium to the bank. For low earners, the rate of interest would be 10.75% that is higher than what is being offered to people earning above Rs. 25,000.
Jairam Sridharan, Axis Bank head for customer lending & payments told “Most of the organized financial institutions in India at present are targeting people earning over Rs. 25,000. Market needs to serve the group under this segment forced the bank to generate such product.”
Against 60 lakh people above Rupees 25,000 income, there are beyond 2.5 crore households covered in Rs. 10,000 – Rs. 25,000 salary segments, which has no place to go for home loan. This situation made the bank to launch 150 affordable housing projects in the previous year alone.
Salaried – 10.75 %