A new home loan scheme by SBI

Q: Now you can get 20% more home loan via interest-only EMIs.

Rishi Dev,

2nd February 2016

Home Loan in Mumbai

home loan

sbi home loan

new home loan scheme

new home loan scheme by sbi

interest-only emi

sbi flexipay home loan

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Replies (3)

But there is certain terms and conditions for availing this new home loan. This new home loan is available mainly to salaried individuals with a 2-year track record. The upper age limit for this scheme is 45 years. Given the target group, the bank offers loans with a repayment tenure of 25-30 yrs under the scheme.

Sukhpreet, Delhi-NCR

2nd February 2016

Comment

Hi Sukhpreet,
This will help a lot to the home loan borrowers as customers will be free to make prepayments towards their home loan without any prepayment penalty.

Dev Patel, Mumbai

2nd February 2016

Hi Saras and Dev,
But at the same time, bank will obtain an authorization from the borrower to raise the EMI if there is an increase in interest rates. This will also ensure that their principal liability will not increase in future.

akhilesh pal,

2nd February 2016

Comment

Hi Akhilesh,
Yes, this is a normal process of bank and everyone has to go through this process. Flexipay home loan would benefit those whose salary does not allow them to the size of loan they are seeking. It would also not benefit those who seek to refinance their existing loan.

Dev Patel, Mumbai

2nd February 2016

@Dev,
Earlier, SBI chairman Arundhati Bhattacharya had a panel discussion with RBI governor Raghuram Rajan in August proposed that banks be allowed to reintroduce ''teaser rate'' home loans. Teaser rate loans are those where the interest burden is lower in the beginning years but rises subsequently. Rajan had rejected the proposal.

akhilesh pal,

2nd February 2016

@Akhilesh,
You mean to say that in Flexipay, there is no increase interest rate. The loan is similar to a regular home loan, except for the stay on principal repayment. Customers under this scheme will be offered the option of paying only interest during the pre-EMI period of 3-5 yrs.

Saras, Noida

2nd February 2016

Hi Rishi,
According to this new scheme, the borrower needs to pay only the interest component in the early years. Thus increasing the loan eligibility for the customer by up to 20%.

Foe example, if you are availing an interest-only EMI on a 15-year for Rs 30-lakh loan should work out to around Rs 24000. On a normal home loan, it would be Rs 31326, including the principal component. This difference of Rs 6000 could bring an additional loan of around Rs 6 lakh.

Dev Patel, Mumbai

2nd February 2016

Comment

Very interesting Dev!!!!
But i heard that this new scheme called ''SBI FlexiPay Home Loan'', will enable young working professionals to get a higher loan amount compared to their loan eligibility under normal schemes. But borrowers will have to make sure that they have the cash resources to meet 10-20% of the property value as this is a regulatory requirement.

Saras, Noida

2nd February 2016