State Bank of India (SBI) on Monday announced the launch of a FlexiPay Home Loan scheme for young professionals. The new scheme allows borrowers to only pay the interest component during the 3–5 year equated monthly instalment (EMI) moratorium period. After the moratorium, the borrowers will have to pay moderated EMIs, which will be stepped up during the subsequent years in order to capture the principal component.
The main aim of the scheme is to allow young professionals to avail higher loan amounts than what the loan eligibility of a regular home loan scheme allows. The move recognizes the special needs of young professionals and will help young executives to acquire better living spaces for themselves and their families. Keeping in mind the fact that the salaries of young professionals increase over a period, resulting in enhancement of repayment capacity, the home loan scheme tries to bridge the gap between affordability and price of quality residential spaces observing. The applicants of the new scheme will have the facility of applying online and getting instant approval.