If you have zeroed in on your dream home, but cannot afford to pay the equated monthly instalments (EMIs) because of your low salary, you can opt for State Bank of India (SBI)â€™s FlexiPay Home Loan scheme. Provided you are a salaried employee aged between 21 and 45 and the loan amount is a minimum of Rs 20 lakh. The scheme, launched on Monday, allows borrowers to get higher loan amount compared to their loan eligibility under regular 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) at SBI. Borrowers will have the option of paying only interest during the moratorium (pre-EMI) period of three to five years, and thereafter pay moderated EMIs. The EMIs will be stepped-up in subsequent years. Against this, in a regular home loan the EMI remains the same, unless the rate of interest changes.
There is a risk of the borrower getting over-burdened by debt if the salary does not increase proportionately, points out Vineet Jain, CEO, Loanstreet.in. â€œIt is tempting for customers to take a risk by borrowing higher amounts. But, with job stability not very high, there is no guarantee that salary increases will happen as planned. That is a risk for both the borrower as well as the lender,â€� he says.
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