The Home Loan market is getting hotter with each new scheme launched by the biggies in the space. And it seems the dual rate game is here to stay.

Axis bank has just launched ‘Power Advantage Home Loan’ scheme- wherein customers can lock in their home loan rates at 8.25 per cent for the first two years followed by a floating rate.

Axis bank had launched a similar scheme some time back where the rate was fixed at 8.0 per cent for the first year followed by a floating rate.

In the new scheme, after the first two years, the floating rate of interest would be applicable at Mortgage Reference Rate (MRR) minus 350 basis points (bps) for loans upto Rs 30 lakh and MRR minus 300 bps for loans greater than Rs 30 lakh.

Mortagage reference rate is the basis for floating rates in a Housing Loan.
The scheme is open till March 31, 2010 and the maximum tenure of the loan will be 25 years.