If you are planning to transfer your home loan from Axis Bank to Kerala Gramin Bank, this blog will guide you through the entire process. Having recently gone through this loan transfer myself, I’ll share the exact steps, challenges, costs, and customer experience.
Shifting from Axis Bank’s Asha Loan Scheme to Kerala Gramin Bank not only helped me explore flexible repayment options but also gave me insights into interest rate advantages, document requirements, and customer support differences.
Why Consider Loan Transfer from Axis Bank to Kerala Gramin Bank?
- High interest rates in Asha scheme (Axis Bank) – started at 10.6% and later reduced to 9.6%.
- Better offers from Gramin Bank – fixed interest rate of 8.25% with special seasonal offers like “100% free processing fee” during Onam.
- Customer experience – accessing services from Axis was not easy, especially when working away from the home branch.
- Opportunity for cost savings – reduction in EMI burden and tenure.
Step-by-Step Loan Transfer Process
1. Applying for Loan Closure Documents from Axis Bank
- First, you need to apply through your home branch or loan center for:
- List of required loan documents
- Insurance policy details
- Loan deed copies and agreement papers
2. Paying the Document Request Fee
- Axis Bank charges ₹590, which must be paid against your loan account number.
- Important: This fee cannot be paid online. It must be deposited at any Axis Bank branch.
- In my case, since I was in Calicut (while my home branch was Kasargod), I visited a nearby Axis branch, deposited the amount, and took the payment slip to the Calicut Loan Center.
3. Collecting Documents from Axis Loan Center
- Insurance documents were provided on the same day.
- Other loan documents like the property deed copy are stored centrally in Hyderabad and take a few days to arrive.
- Once available, you need to visit the loan center again to collect them.
4. Communication from Axis Bank
- Surprisingly, after submitting the document request, I received a call from Axis Kochi Loan Office the very next day.
- They inquired why I wanted to transfer to Kerala Gramin Bank.
- As I mentioned lack of customer support and better interest rates at Gramin Bank, they offered me:
- 1% reduced interest (from 9.6% down to 8.5%)
- Option for additional top-up funds
👉 Tip: If you’re on the Asha scheme and have a good repayment history, Axis may offer you a lower rate if you negotiate.
Comparison of Axis Bank vs Kerala Gramin Bank Loan Terms
| Feature | Axis Bank (Asha Scheme) | Kerala Gramin Bank |
|---|---|---|
| Interest Rate Initially | 10.6% | Fixed 8.25% |
| Current Revised Rate | 9.6% → 8.5% (after negotiation) | 8.25% |
| Repo Rate Linked | Yes (floating) | No (fixed) |
| Processing Fees | Nil for closure | Normally applicable, but 0% during Onam offer |
| EMI Flexibility | Tenure reduces when repo rate cuts | EMI fixed since interest is fixed |
| Insurance Policies | Continue existing policies | Can reuse Axis insurance if advocate approves |
Customer Experience Insights
- Accessibility issues: Since my home branch was in Kasargod and I worked in Calicut, arranging payments and collecting documents was inconvenient.
- No direct loan center payment: Axis required me to visit a branch to make the ₹590 payment; online options were unavailable.
- Communication gap: Axis loan centers had no direct phone lines, making it tough to get updates.
- Competitive negotiation: When Axis realized the transfer, they became flexible in offering lower rates—showing that negotiation is possible.
- Gramin Bank’s simple process: With seasonal offers like zero processing fees and straightforward documentation verification by an advocate, the transfer felt more customer-friendly.
Documents Required for Loan Transfer
- Copy of loan deed and sanction letter
- Latest EMI statement
- Insurance policy documents
- Closure letter from existing bank
- KYC documents (PAN, Aadhaar, address proof)
- Income proof (ITR or Form 16 for last 1–2 years, depending on new bank’s requirements)
Final Thoughts – Should You Transfer?
Transferring your Axis Bank loan to Kerala Gramin Bank (or any other bank) can be highly beneficial if:
- You are paying a higher interest rate under Asha scheme or older terms.
- You are eligible for fixed-rate low-interest options in regional banks.
- Your repayment history is clean, which allows negotiation for lower rates.
👉 Always check:
- Pre-closure charges (Axis had no closing fee in my case).
- Seasonal offers (Gramin Bank’s 0% processing fees saved me additional cost).
- Long-term benefits of fixed vs floating interest rates.
