Standard Chartered launches innovative interest-only home loan facility

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Standard Chartered launches innovative interest-only home loan facility

Posted on February 15, 2022

Standard Chartered Bank, India today announced the launch of an innovative interest-only home loan facility for new and existing customers of the Bank who wish to avail of a home loan.

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, customers will only pay accrued interest on the outstanding principal – referred to as an ‘interest only period’. No principal will be deducted during this interest only period.

This product is available to new and existing Standard Chartered Bank customers. Clients can also take advantage of the Interest Only Home Loan facility to transfer their existing home loans from another financier to Standard Chartered.

Customers can choose to pay only the interest amount via equivalent monthly installments (EMI) for an initial period of up to 1-3 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 maturity of the loan. Customers will also have the option to start their full installments sooner without penalty charges.

The interest-only home loan will help clients 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 constrained due to higher installment payments at the start of the loan.

Commenting on this offer, Jinesh Shah, Head – Mortgages and Retail Loan against Property, Standard Chartered Bank, India, said“We continually strive to deliver innovative products and offerings that provide convenience and greater flexibility to our customers. We believe the interest-only home loan is in line with this effort as it provides an alternative who wish to take advantage of prevailing terms and reduce their EMI burden for the initial term of their loan.The residential housing sector has accelerated compared to last year.Stamp duty reductions announced by state governments, Unmet demand due to COVID-19 restrictions and moderating home loan interest rates led to growth in primary and secondary market commercial property sales as well as home loans.

Customers can avail the interest only home loan facility for loan amount ranging from INR 35 lakhs to INR 3.5 crore. The maximum duration set for the loan is 30 years for employees and 25 years for the self-employed.

Dorothy H. Lewis