Standard Chartered Bank, India, today announced the launch of an Interest-only Home Loan facility aimed at new and the Bank’s existing clients looking at availing a home loan.
What is Interest-Only Home loan facility?
Interest-Only Home Loan is a facility provided for purchase of completed residential properties where during a limited period of the loan tenure, the clients will pay only the interest accrued on the principal outstanding - referred as ‘interest only period’. No principal will be deducted during this interest only period, the bank said in a press statement.
This product is available to new as well as existing clients of Standard Chartered Bank. Clients can also avail the Interest Only Home Loan facility to transfer their existing home loans from another financier to Standard Chartered.
How it works?
Clients can choose to pay only the interest amount via Equated Monthly Instalments (EMIs) for an initial period of up to 1 – 3 years. After this interest only period is over, the home loan facility will be treated like a normal loan account where the EMIs comprise of both the principal and interest till the maturity of the loan. Clients will also have the flexibility to commence their full instalments earlier with no penalty fees as well, the statement said.
Jinesh Shah, Head – Mortgages and Retail Loan against Property, Standard Chartered Bank, India, said, “The residential housing sector has picked up pace from last year. Stamp duty cuts announced by state governments, unfulfilled demand due the COVID-19 related restrictions and moderation in interest rate of home loans has led to a growth in sales of retail properties in the primary and secondary markets as well as home loans.”
Clients can avail of the Interest Only Home Loan facility for a loan amount ranging from Rs 35 lakhs to Rs 3.5 crore. The maximum tenure set for the loan is 30 years for salaried individuals and 25 years for self-employed individuals.