Hyderabad:Standard Chartered Bank, India's leading foreign bank, has announced a unique home loan product, HomeSaver, for the residents of the twin cities of Hyderabad and Secunderabad.
StanChart Bank regional head (consumer banking) Vishu Ramachandran says the product is a combination of home loan and bank account that helps reduce the interest and tenure of the loan.
HomeSaver allows the customer to pay back the home loan principal by utilising the excess funds in the HomeSaver account. This reduces the overall interest payment and the tenure of the loan.
The product allows customers to pool their salary, savings and surplus funds lying in other accounts into HomeSaver that goes towards reducing the balance principal outstanding. Since the interest is calculated on the daily outstanding balance, every rupee kept in HomeSaver each day goes towards prepaying the loan that helps the customers pay back the loan faster and save substantial interest.