The State Bank of India (SBI) Bhopal circle here on Monday launched the SBI Flexpay Home loan scheme.
Informing about the scheme, KT Ajit, Chief General Manager of SBI’s Bhopal Circle said that EMIs under existing home loan products available in the market remain fixed and uniform throughout the loan tenor, whereas, income of the borrowers increase many-folds over the time, as a result of which the borrowers get stressed and stretched during the initial years to service the EMIs.
But during the subsequent years they find EMIs to be a very small portion of his/her monthly income due to many-fold increase in his/her monthly income during this intervening period.
Under this new scheme, the borrower has option of paying lower EMIs during the initial years and step-up the same during the subsequent years while ensuring recovery of entire loan amount within agreed loan tenor.
The applicants should be in the age bracket of 21 years to 45 years.
There is no minimum NMI limit, however, the minimum loan amount under the scheme will be Rs 20 lakh. The maximum amount would be 1.2 times the loan quantum calculated as per normal EMI/ NMI ratio method subject to stipulated loan to value norms.
The loan term would be minimum 25 years and maximum 30 years.
The loan offers a moratorium period of 36 months for ready to move properties and for under construction properties maximum period of 60 months is allowed.
This product would encourage the youth to acquire residential property in their initial of service/business and need not wait for their income to go up, added Ajit.