Standard Chartered Bank, India has launched the “interest only home loan” facility for completed residential properties. where during the initial term, borrowers pay only accrued interest on the outstanding principal.
“No principal will be deducted during this interest-only period,” he said in a statement on Tuesday, adding that the facility is for new and existing customers seeking a home loan.
Borrowers can choose to pay only the interest amount via equivalent monthly installments for an initial period of up to one to three years. After that, the facility will be treated as a normal loan account where the EMIs include both principal and interest until loan maturity.
Borrowers can also start their full payments earlier without penalty charges.
“The interest-only home loan will help customers reduce their initial cash outflow by paying less for the initial term of the loan,” the bank added.
The facility is available for a loan amount ranging from Rs 35 lakh to Rs 3.5 crore. The maximum duration set for the loan is 30 years for employees and 25 years for the self-employed.
February 15, 2022