Interest Rate Not Reduced on Axis Bank Home Loans

[iamabhisekagar]

So I have 1 home loan and 2 LAPs currently with Axis Bank, all linked to Repo Rates.
From February 2025 to date, we have had 3 rate cuts of 0.25%, 0.25%, and 0.50% respectively
However, Interest Rates on my Loans have only reduced by 0.25% as of now...
Is it odd? what are the next steps?

 

[TechnoFinoTechnoFino is verified member.]

As expected, this is definitely not right. Contact your bank and ask for a rate cut.

I have a home loan with SBI, and they usually reduce the interest rate to match the repo rate cut within a few days of the RBI's announcement. The recent rate cut hasn't been applied yet, but they typically take around 3 to 7 days. So, I'm waiting for them to apply it automatically.

 

[prankster]

Axis bank usually reviews these changes quarterly imo, you can check with them over email.

 

[Indrajeet100]

There is interest reset date for loan usually it is quarterly for home loan. For your LAP you need to see you sanction letter. Benchmark rate changes reflect in loan from this date onwards.

 

[Credit raja]

wait till on 25th june your interest will get reset cycle and rate will be reduced by 0.75%.
Axis bank has quarterly reset cycles.

 

[rahulj87]

Same here. On reaching out they told me it will reflect by June 25.

 

[Dhruvit.SDhruvit.S is verified member.]

My reset recently happened, now I dont want to wait another quarter. Is there a way to pressure them?

 

[rahulj87]

My reset recently happened, now I dont want to wait another quarter. Is there a way to pressure them?

Which bank is this

 

[akash2401akash2401 is verified member.]

As expected, this is definitely not right. Contact your bank and ask for a rate cut.

I have a home loan with SBI, and they usually reduce the interest rate to match the repo rate cut within a few days of the RBI's announcement. The recent rate cut hasn't been applied yet, but they typically take around 3 to 7 days. So, I'm waiting for them to apply it automatically.

True bro.. Most of the SBI HL's are linked to EBLR which typically resets by 15 of the same month. So expect a rate cut of around 50bps by 15th June. P.S. that's the insider info...

 

[Dhruvit.SDhruvit.S is verified member.]

Which bank is this

Kotak Mahindra Bank

 

[customerrights]

I recently reached out to Axis Bank regarding the review of interest rates on my loan. They've responded stating that they conduct interest rate revisions on a quarterly basis (25th March, 25th June, 25th Sept, 25th Dec). However, I’m uncertain when this practice was adopted, as in recent years, Axis Bank used to adjust rates soon after RBI increased the repo rate, rather than waiting for the quarterly cycle.

This inconsistency feels unfair. It appears they’ve now reverted to a quarterly review just when the global interest rate trend, especially led by the U.S., is downward. With India likely to follow suit and cut rates multiple times this year, this shift by Axis Bank seems self-serving.

I would kindly urge others to raise this concern with the RBI Ombudsman via https://cms.rbi.org.in/cms/indexpage.html#eng or email them on crpc@rbi.org.in. If more voices highlight such discrepancies, it could encourage the RBI to implement clearer, consumer-friendly policies that banks must adhere to.

PS: You can also check your rate change history by logging into your Axis Bank net banking portal and reviewing the ROI (Rate of Interest) updates.

 

[Indrajeet100]

I recently reached out to Axis Bank regarding the review of interest rates on my loan. They've responded stating that they conduct interest rate revisions on a quarterly basis (25th March, 25th June, 25th Sept, 25th Dec). However, I’m uncertain when this practice was adopted, as in recent years, Axis Bank used to adjust rates soon after RBI increased the repo rate, rather than waiting for the quarterly cycle.

This inconsistency feels unfair. It appears they’ve now reverted to a quarterly review just when the global interest rate trend, especially led by the U.S., is downward. With India likely to follow suit and cut rates multiple times this year, this shift by Axis Bank seems self-serving.

I would kindly urge others to raise this concern with the RBI Ombudsman via https://cms.rbi.org.in/cms/indexpage.html#eng or email them on crpc@rbi.org.in. If more voices highlight such discrepancies, it could encourage the RBI to implement clearer, consumer-friendly policies that banks must adhere to.

PS: You can also check your rate change history by logging into your Axis Bank net banking portal and reviewing the ROI (Rate of Interest) updates.

Your perception is not correct. Rate changes happen on reset date of loan quarterly whether up or down. It maybe coincidence that some benchmark change may have happened few days before interest reset date so it will reflect quickly. There is no such case of customer unfairness after RBI made mandatory to link with external benchmark for individuals.