In a bid to attract young customers, top lender State Bank of India (SBI) has launched a new home loan scheme offering higher amount and up to five years of interest moratorium, informed a senior official.
With the ‘FlexiPay Home Loan’, the bank seeks to boost its home finance portfolio by wooing young borrowers, offering them an interest moratorium for an initial period of 3 to 5 years and then pay moderate EMIs.
SBI, however refused to name it as the now-discontinued ‘teaser loan’, saying it is not offering any discount in interest rates or offering more loan to value.
“It is not a teaser loan. There is no change in the interest rates and loan to value ratio. Taking into consideration the net monthly income of a customer, the EMIs will be decided,” said Managing Director for National Banking Group Rajnish Kumar.
Targeting working professionals, the FlexiPay Home Loan will enable young working professionals to get higher amount compared to their eligibility under normal schemes.
“To lower the impact of such additional loan amount on monthly repayments in the form of EMIs, the customers availing home loan under the scheme will also be offered the option of paying only interest during the moratorium (pre-EMI) period of 3 to 5 years, and thereafter, pay moderate EMIs,” SBI said in a statement.
The EMIs will be stepped up during the subsequent years, the bank said, adding the move is a recognition of the special needs of this growing aspirational segment, and to bridge the gap between affordability and demand for quality residential spaces, the bank added.