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How a Flexi Hybrid Home Loan can reduce your EMI

  • Highlights

  • Pay interest-only EMIs for the first 4 years

  • Use this period to plan repayment for the balance tenor

  • Make pre-payments and use the amount as a top-up loan

  • Repay only interest when you avail a top-up loan

The EMIs of your home loan determine the affordability of the loan and also the ease of repayment. In this regard, a Flexi Hybrid Home Loan scores higher than a regular home loan. This unique loan offering allows you to buy a home now, without delaying the decision or saving up for the purchase first.

You can easily purchase a home of your choice by borrowing a feature-rich Flexi Hybrid Home Loan from Bajaj Finserv. This loan offers you 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 this loan reduces your EMI burden.

Let’s assume that you have borrowed a loan of Rs.60 lakh for a tenor of 20 years at an interest rate of 8.4%. Given this your 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.

Benefit from interest-only EMIs initially

When you take 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 you take a Flexi Hybrid Home Loan, the EMI is low for the first 4 years of the tenor, as during this period you only have to pay the interest. From the 5th year onwards, your EMI will comprise interest and principal repayment. So, for the first 4 years, your EMI will be less than Rs.51,690, and then it will increase to this amount.

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By paying low EMIs initially, you can greater affordability. Moreover, you can use these 4 years to organise your finances and prepare for the rest of the tenor, when you will have to repay interest and principal each month.

Access extra funds and pay low EMIs

When you take this loan variant, you can also make part-prepayments as and when you choose to, at no extra charge. Let’s assume that you pre-pay Rs.6 lakh. Had you taken a term loan, your principal would have become Rs.54 lakh and you would be able to pay a lower EMI. Here is where the Hybrid Flexi Home Loan differs from a term loan.

In this case, the lender will take your prepayment and set it aside. As a result, your principal will stay the same, as will your EMIs. However, you have the option to take the amount that you have prepaid as a loan if you need additional funds further along in the tenor. If you choose this option, you 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 your EMIs to a minimum.

So, when you purchase a home can using the Flexi Hybrid Home Loan, you can enjoy great flexibility and affordability. Besides, when you take this loan from Bajaj Finserv, you can avail it on a pre-approved basis. This will help you make your loan experience even more convenient and rewarding. You can enter a few details and check your pre-approved offer now.

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