The newly-launched SBI FlexiPay Home Loan will help working professionals fulfil their aspirations of owning homes, Badal Chandra Das, Chief General Manager, SBI Kerala Circle, has said.

The new product was unveiled at 14 circle offices of SBI along with the formal launch at the hands of Chairperson Arundhati Bhattacharya in Mumbai on Monday.

Flexible option It is targeted at the salaried employees aged between 21 and 45 years with a required loan amount of not less than ₹20 lakh, Das told newspersons here.

It allows borrowers to get higher loan amount compared to their loan eligibility under normal home loan schemes. Interest rates, loan to value ratio (LTV) and pre-payment conditions remain the same.

The eligibility is arrived at by calculating equated monthly instalment (EMI) to net monthly income (NMI) ratio, which will not be allowed to exceed 65 per cent. Twenty per cent is sanctioned extra.

The additional loan amount will help the customer in acquiring better and spacious living spaces for himself and his family even as their future needs are also taken into account.

To lower the impact of such additional loan amount on the monthly repayments in the form of EMIs, customers need to pay only the interest during a moratorium period (pre-EMI) of three to five years and thereafter pay moderate EMIs.

The EMIs will be stepped up during the subsequent years in consonance with the expected rise in salaries, Das said.

Among those present at the press conference were K Venkatachalapathy, General Manager, and Joy C Aryakara, Deputy General Manager (Personal Banking Business), SBI, Kerala Circle.

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