Features and hidden facts of Axis Bank Shubh Aarambh scheme; Should you opt for this 12 EMI-wavier home loan scheme

Many of you might have read about Axis Bank's Shubh Aarambh, which promises 12 months EMI waiver for the customers. Under this scheme, a person can avail a maximum home loan of Rs 30 lakhs for a minimum tenure of 30 months and you cannot prepay the loan before 4 years.

What are the Features of Shubh Aarambh scheme?

1. The floating interest rate is 8.35%/annum for all the salaried individuals and 8.40%/annum for the self-employed borrowers.
2. A processing fee of 1% of loan amount is set, with a minimum amount of Rs. 10,000.
3. For a Rs. 30 lakh home loan, the processing fee will be Rs. 30,000
4. EMI cycle has to mandatorily begin on the 5th of every month
5. This scheme is available only for native Indians.
6. Home loans can be used to purchase an under construction/ready/resale house, self-construction, plot plus construction or home extension and improvement.
7. You can move existing home loans to Axis Bank and avail this benefit

Hidden Facts Behind Shubh Aarambh scheme:

1. 12 EMIs waived off on regular payment of EMIs. 
2. 4 EMIs waived off at the end of the 4th, 8th & 12th year. 
3. Repayment track record should be clean, i.e., only 3 instances where dues are pending for 30 days and above but never over 90 days during the life of the loan. 
4. The EMIs will not be waived if the track record is not clean
5. The minimum tenure at the time of disbursement should be 20 years. The loan can also be partly paid, as long as the loan tenure does not fall below 48 months (4 years).
6. Close the loan early without any prepayment.To avail waiver benefit the tenure should not fall below 4 years. Means, you cannot pre-close the loan before 4 years.

The optional benefit of interest subsidy benefits on qualifying under eligibility criteria of Pradhan Mantri Awas Yojana Scheme.