Home / Industry / Banking /  Standard Chartered Bank launches interest-only home loan facility

Standard Chartered Bank launches interest-only home loan facility

The facility is applicable on loans ranging between  ₹35 lakh and  ₹3.5 crore, and the maximum tenure set for the loan is 30 years for salaried individuals and 25 years for self-employed individuals. Photo: iStockPremium
The facility is applicable on loans ranging between 35 lakh and 3.5 crore, and the maximum tenure set for the loan is 30 years for salaried individuals and 25 years for self-employed individuals. Photo: iStock

  • Standard Chartered's interest-only home loan is for purchase of completed residential properties where during a limited period of the loan tenure, borrowers will pay only the interest accrued on the principal outstanding

Mumbai: Standard Chartered Bank, India, on Tuesday announced the launch of its interest-only home loan facility aimed at new as well as its existing customers.

The lender said that interest-only home loan is a facility provided for purchase of completed residential properties where during a limited period of the loan tenure, borrowers will pay only the interest accrued on the principal outstanding. No principal will be deducted during this interest-only period, it said.

This is applicable on loans ranging between 35 lakh and 3.5 crore, and the maximum tenure set for the loan is 30 years for salaried individuals and 25 years for self-employed individuals.

Customers can choose to pay only the interest amount through equated monthly instalments (EMIs) for an initial period of one-three years. After this interest-only period is over, the home loan facility will be treated like a normal loan account where the EMIs comprise both the principal and interest till the maturity of the loan, it added.

According to the statement, interest-only home loan will help customers reduce their upfront cash outflows by paying less for the initial tenor of the loan. This offering will also help clients buy larger or better properties of their choice without feeling constrained due to higher instalment payments at the outset of the loan, it said.

Jinesh Shah, head (mortgages and retail loan against property), Standard Chartered Bank, India, said, “We continually strive to offer innovative products and offerings that provide convenience and greater flexibility to our clients."

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