Standard Chartered introduced Interest only Home Loan scheme, facility to pay interest only

Home Loan: Customers can avail interest only home loan facility for loan amounts ranging from Rs 35 lakh to Rs 3.5 crore.

This product is available to new and existing Standard Chartered Bank customers.

Standard Chartered Bank has today introduced new and existing customers of the bank. Home Loan (Home Loan, Innovative scheme with the aim of providing Interest Only Home Loan announced the launch of the facility. This is a facility provided for the purchase of fully-fledged residential properties, where the customer will pay only the interest earned on the principal outstanding outstanding during the limited tenure of the loan, which is called the ‘interest only period’. Is. No principal will be deducted during this interest repayment period.

New and old customers will get benefit- This product is available to new and existing Standard Chartered Bank customers. Customers can also avail the interest only home loan facility to transfer their existing home loan from any other financier to Standard Chartered.

Facility to pay interest only for 1 to 3 years

Customers can choose to pay only the interest amount through Equated Monthly Installments (EMIs) for an initial tenure of 1 to 3 years. After the end of this interest-period, the home loan facility will be treated like a normal loan account where the EMI includes both principal and interest till the maturity of the loan. At the same time, customers will be allowed to start their entire installment first without any penalty.

An interest only home loan will help customers reduce their cash upfront payment by paying less for the initial tenor of the loan. This offer will help the customers to buy bigger or better properties of their choice and not feel tied down due to higher installment payments at the inception of the loan.

They can take advantage

Customers can avail interest only home loan facility for loan amounts ranging from Rs 35 lakh to Rs 3.5 crore. The maximum tenure prescribed for the loan is 30 years for salaried individuals and 25 years for self-employed individuals.

Speaking on the launch, Jinesh Shah, Head – Mortgage & Retail Loan Against Property, Standard Chartered Bank India said, “We constantly strive to launch new products and offerings that offer convenience and greater flexibility to our customers. We believe that interest only home loans are in line with this endeavor as they provide options to our customers who wish to take advantage of the prevailing circumstances and reduce their EMI burden for the initial tenure of their loan.

The residential housing sector has gained momentum since last year. Reduction in stamp duty announced by state governments, unfulfilled demand due to COVID-19 related restrictions and reduction in home loan interest rate has led to an increase in the sale of retail properties as well as home loans in the primary and secondary markets.

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