‘FlexiPay’ home loan by SBI comes with 3-5 yrs interest moratorium

State Bank of India has introduced a new home loan option, called the SBI FlexiPay Home Loan. The specialty of this home loan is that the repayment terms come in the form of lower EMIs in initial years, followed by higher EMIs.

The public sector lender has refused to term it as a ‘teaser loan’, a term introduced by the bank in February 2009. SBI officials stated that it is not offering any discount in the interest rates or offering more loan to value.

The statement released by the bank said that the new offering will enable young working professionals to get hold of higher loan amounts as compared to their loan eligibility under the standard home loan schemes.

“This product cannot be called teaser loan as we have taken adequate safeguards like making it available only for salaried professionals and not for all categories of customers,” said Rajnish Kumar, managing director, SBI.