Top three flexible home loan schemes you can considerThere are more than 90 commercial banks and more than 20 financial institutions that lend money to individual borrowers. So, when it comes to a home loan the choice is very wide. Comparing across financial institutions is no easy task. So, here are the three popular home loans that you can consider.

SBI FlexiPay Home Loan

This loan is designed by the State Bank of India (SBI) for young salaried individuals. This home loan provides borrowers with eligibility for a higher loan amount. Under the scheme, borrowers need to pay only the interest component in the first few years, that is, borrowers have the option to pay only interest during the moratorium (pre-EMI) period. They will be paying moderated EMIs later. The EMIs will be stepped-up by SBI during the subsequent years.

SBI says that this will help increase the borrower’s eligibility for the loan amount by close to 20%. Let’s take an example to understand this better. For instance, if you take a loan for Rs 40 lakh for 15 years, your EMI will work out to Rs 34,000 under this scheme. The loan of Rs 40 lakh under a normal home loan would be Rs 41,890. This difference in EMI will mean that you could go for an additional loan amount of about Rs 6 lakh.

However, you will have to prove to SBI that you can make the down-payment for the additional loan amount. Banks are usually allowed to lend only up to 80%-90% of the property cost. The rest of the amount has to be funded by the borrower. That is why you have ensure that you have enough saved for the down-payment.

The minimum age limit for applying for this loan is 21 years and the maximum age is 45 years. You can choose repayment tenure of up to 30 years.

Features of SBI Flexi Pay Home Loan

  •         Higher eligibility
  •         Lower EMIs initially
  •         Higher tenure

ICICI Bank Extraa Home Loan

This loan by ICICI Bank is for those who might have low eligibility or savings. Home loan tenures are usually linked to the borrower’s retirement age. ICICI Bank Extraa Home Loans allow you to enhance your loan amount by up to 20%. It also provides borrowers the option to extend the repayment period up to 67 years of age. The enhancement in the loan amount and repayment period is backed by mortgage guarantee.

With a normal home loan, you can get a loan only up to your retirement age which will be 60 years. By assuming your retirement age to be 67 years, ICICI bank allows you to get additional funds for your home loan. ICICI Bank provides this loan for borrowers who are either salaried or self-employed. This loan might be suitable for those who are nearing retirement and might not find loans for a long tenure. For example, if a borrower is 48 years old, the tenure for a normal home loan will be only 12 years because retirement age is taken as 60 years. With ICICI Bank Extraa Home Loan, the borrower can get a home loan for 20 years and since the tenure is extended, the EMI will be lesser.

This loan product is being offered by ICICI bank in partnership with Indian Mortgage Guarantee Corporation (IMGC).

Features of ICICI Extraa Home Loan

  •         Higher loan amount
  •         Higher tenure
  •         Same EMI

Axis Bank Super Saver Home Loan

This home loan from Axis Bank is for those who want to reduce their interest payments. The loan account is known as the Super Saver account. The borrower will make deposits in the Super Saver Account after the loan is disbursed.  The deposit amount will be subtracted from the principal amount and the interest for the loan will be calculated based on the adjusted principal. The excess funds parked can also be withdrawn on requirement.

For instance, if your principal outstanding is Rs 40 lakh and you deposit Rs 4 lakh in the Super Saver account, your home loan interest would be calculated only on Rs 36 lakhs and not Rs 40 lakh. As it might be obvious, instead of paying any interest on the deposit in the Super Saver Account, the bank sets it off against the interest that you need to pay for your home loan.

The Axis Bank Super Saver Home Loan has a maximum tenure of 20 years. The minimum loan amount is Rs 50 lakh. The loan will offer floating interest rate. So, there will be no prepayment charges.

Features of Axis Bank Super Saver Home Loan

  •         Lower interest payment
  •         No prepayment charges
  •         Floating rate interest

When you go for a home loan and you need higher eligibility, you can consider going for a joint home loan.

Staff Writer

This article is written by RupeeIQ editorial staff.