SBI Flexi Pay Home Loan

SBI Launched SBI Flexi Pay Home Loan

If you have zeroed in on your dream home, but cannot afford to pay the Equated Monthly Instalments (EMIs) due to your low salary, you can opt for State Bank of India's FlexiPay Home Loan scheme. Provided you are a salaried employee between 21 and 45 years and the loan amount is minimum Rs 20 lakh.

The scheme, which was launched on Monday, allows borrowers to get higher loan amount compared to their loan eligibility under normal home loan schemes. Other conditions like interest rates, loan to value ratio (LTV) and pre-payment conditions remain the same, says Jayanti Lakshmi, Chief General Manager (Real Estate, Habitat and Housing Development), SBI.

The difference is that in a regular home loan the EMI remains the same unless the rate of interest changes. But under SBI's FlexiPay loan, the EMI will increase gradually over the years, in tandem with the borrowers' salary.

Borrowers will have the option of paying only the interest during the moratorium (pre-EMI) period of three to five years, and late on pay moderated EMIs. The EMIs will be stepped-up during the subsequent years.

"A lot of youngsters who need a two bedroom house now often end up buying a one bedroom house because of their salary. They later on sell it off and buy a bigger home. But under the Flexi Pay scheme they can buy a bigger home early in their careers. When you take a loan in the initial period of your career, the burden may seem high, Lakshmi says. In case of the FlexiPay loan, the EMI increases as your salary increases, which will reduce the burden in the later years

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