Pune: The EMIs of home loan determine the affordability of the loan and the ease of repayment. In this regard, a Flexi Hybrid Home Loan scores higher than a regular home loan.
This unique loan offering allows the customer to buy a home now, without delaying the decision or saving up for the purchase first.
Customers can easily purchase a home of their choice by borrowing a feature-rich Flexi Hybrid Home Loan from Bajaj Finserv. This loan offers various benefits like a nominal rate of interest, flexible tenor and high loan amount of Rs.10 crore.
But, first, take a look at how flexi hybrid home loan works.
4 years principal holiday
Let's assume that customer have borrowed a loan of Rs.60 lakh for a tenor of 20 years at an interest rate of 8.4%. Total interest amount will be Rs.64,05,762, with EMIs of Rs.51,690 each, and a total repayment amount of Rs.1,24,05,762.
When a customer opts for a term loan, each EMI of Rs. 51,690 consists of a portion that goes towards repaying the interest, while the balance goes towards repaying the principal. This EMI is constant throughout the tenor. When one opts for Flexi Hybrid Home Loan, the EMI is low for the first 4 years of the tenor, as during this period customers only have to pay the interest.
From the 5th year onwards, the EMI will comprise interest and principal repayment. So, for the first 4 years, EMI will be less than Rs. 51,690, and then it will increase to this amount. Home buyers can use these 4 years to organise the finances and prepare for the rest of the tenor, when they will have to repay interest and principal each month.
Access extra funds and pay low EMIs
Home buyers also have an option to make part-prepayments as and when they choose to, at no extra charge. Let's assume that they pre-pay Rs.6 lakh. If one opts for term loan, the principal would have become Rs.54 lakh and they would be able to pay a lower EMI. There lies the difference in Flexi Hybrid Home Loan and term loan.
In this case, the lender will take the prepayment and set it aside. As a result, the principal will stay the same, as will the EMIs. However, home buyers have the option to take the amount that they have prepaid as a loan if they need additional funds further along in the tenor. If the customer avails this option, they only have to repay the interest on Rs.6 lakh. Besides, the rate of interest is extremely low. This also helps keep the value of the EMIs to a minimum.
So, when home buyers opt for Flexi Hybrid Home Loan, they can enjoy great flexibility and affordability. Besides, when the loan is availed from Bajaj Finserv, customer can avail it on a pre-approved basis. This will help in making the loan availing experience even more convenient and rewarding.