LUCKNOW: Axis Bank, India's one of the largest private sector banks, on the occasion of its 20th anniversary announced the launch of 'Asha home loan', a 30 years home loan product for the first time home buyers in the lower income segment seeking affordable EMIs (equal monthly installments).
Asha home loans are for customers with family incomes of Rs 8000-10000 per month and above. The customers can pool in their family income instead of depending on their individual income only. The product offers loans as small as Rs 1 lakh up to Rs 15 lakh in small towns (population less than 10 lakh) and up to Rs 25 lakh in larger towns (population more than 10 lakh).
Industry estimates state that there is an overall urban housing shortage of 19 million units, out of which more than 90 percent of the demand is from the low income group and below. Further, on the supply side, limited availability of land in urban areas does not make it viable for developers to provide affordable housing in these locations.
Therefore, affordable housing projects are coming up in the peripheral areas of tier 1 cities where land prices are comparatively cheaper. Keeping affordability in mind, developer focus is also shifting to tier II and III cities. Asha home loans offer loans up to 90 percent of the market value of the property", says the company.
Company claims that the 'Asha home loan' product can be availed in both floating and fixed rate options, at reasonable interest rates, with simple documentation. The appraisal methodology has been formulated keeping in mind the profile of this customer segment. "It said that 'Asha home loans' product design and structure is the outcome of extensive research it had conducted on the lower income customers in India.
Jairam Sridharan, head consumer lending and payments, Axis Bank said, "We see tremendous potential in the affordable housing segment. The customer segment having lower level of income and aspiring to own their first house in the peripheral areas of tier I cities or within tier II and III towns has largely remained untapped. Asha Home Loan would help bridge this gap."
'Asha home loan' would be available to both salaried and self-employed resident Indians. The demand from this segment is largely towards smaller property configurations in order to meet their basic requirement of owning a house, and hence the product has been designed keeping in mind customers who purchase properties with an area measuring 325 square feet and above. Loans can be availed for new, resale, ready, under construction property, as well as for purchasing a plot and constructing a house on it.