SBI launches new `FlexiPay' home loan scheme for professionals

State Bank of India (SBI) on Monday launched `SBI FlexiPay Home Loan', a new home loan scheme offering higher amount and a 3 to 5 year moratorium on interest payment, aimed at young professionals.

The public sector lender has structured the loan in such a way as to offer lower EMIs in the initial years, followed by higher EMIs, in a bid to boost its home loan portfolio.

FlexiPay Home Loan will enable young working professionals to get higher amounts compared to their eligibility under normal schemes.

"To lower the impact of such additional loan amount on monthly repayments in the form of EMIs, the customers availing home loan under the scheme will also be offered the option of paying only interest during the moratorium (pre-EMI) period of 3 to 5 years, and thereafter, pay moderate EMIs," SBI said in a statement today.

The EMIs will be stepped up during the subsequent years, the bank said, adding the move is a recognition of the special needs of this growing aspirational segment, and to bridge the gap between affordability and demand for quality residential spaces."

SBI had in November 2010 launched a loan scheme, called 'teaser loan', which offered lower interest rates in the beginning but higher EMIs as the loan tenor matured.

The teaser loan scheme had catapulted SBI to the No. 1 slot in the home loan space while its critics like HDFC too, later , followed up with similar schemes.