Mumbai: Standard Chartered Bank, India, on Tuesday announced the launch of its interest-only home loan facility for new customers as well as its existing customers.
The lender said the interest-only home loan is a facility provided for the purchase of completed residential properties where, for a limited period of the term of the loan, borrowers will only pay accrued interest on the outstanding principal. No principal will be deducted during this interest-only period, he said.
This applies to loans between ₹35,000,000 and ₹3.5 crore, and the maximum duration set for the loan is 30 years for employees and 25 years for the self-employed.
Customers can choose to pay only the interest amount through equivalent monthly installments (EMI) for an initial period of one to three years. Once this interest only period is over, the home loan facility will be treated as a normal loan account where the EMIs include both principal and interest until the maturity of the loan, he added. .
According to the statement, the interest-only home loan will help customers reduce their initial cash outflow by paying less for the initial term of the loan. This offer will also help clients buy bigger or better properties of their choice without feeling pressured by higher installment payments at the start of the loan, he said.
Jinesh Shah, Head (Mortgages and Retail Lending Against Property), Standard Chartered Bank, India, said, “We are continually striving to deliver innovative products and offerings that provide convenience and greater flexibility to our customers. .”