Interest Only Home Loan Launched By Standard Chartered Bank, a new chapter in already competitive financial market. This is introduced only for purchasing the completed residential properties where during a limited period of the loan tenure, the borrowers 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 maximum loan amount would be Rs 35.00 lakhs to Rs 325.00 Lakhs.
Standard Chartered Bank, India launched the interest only home loan facility for both new as well as the bank’s existing clients looking at availing a home loan.
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How Does Interest Only Home Loan work ?
- Borrowers 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.
- Borrowers will also have the flexibility to commence their full instalments earlier with no penalty fees as well.
- Individual’s can avail 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.
Benefits
- Bank claims that the Home Loan will help clients reduce their upfront cash outflows by paying less for the initial tenor of the loan.
- This offering will also help borrowers buy larger or better properties of their choice without feeling constrained due to higher instalment payments at the outset of the loan.