Flexi loans may be the need of the hour
In the current scenario, home buyers in India have little say in the interest rates on their loans. But products with flexible interest due can prove to be a big innovation in coming days as banks such as SBI, Citibank, Standard Chartered, HSBC, among others, are offering loans with flexible interest payable.
The flexi or smart loans – come with some variations, but in effect they are like ‘sweep-in, sweep-out’ deposits which can take care of the borrower’s emergency needs and earn higher-than-savings-account return at the same time.
In case of smart loans the borrowers have to pay relatively small amounts in installments and can withdraw funds only to the extent requisite and thus save on the interest outgo. It could especially be proved beneficial to borrowers who may have bought an under-construction property, where payments have to be made to the builder according to the progress of construction.
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Source: Economic Times
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