Things to know before applying for a Flexi Hybrid Home Loan

Purchasing your dream home requires detailed planning. Most importantly, you must map out the financial tools that you will use to buy your home. One worthy option is a home loan. But, instead of taking a regular home, consider taking a Flexi Hybrid Home Loan. This customised loan is designed to bring more flexibility and convenience to your borrowing experience.

Bajaj Finserv offers you a Flexi Hybrid Home Loan with a host of features. You can avail a high-value loan of up to Rs. 15 crore*, a long tenor of your choice, make part-prepayments at no extra cost and benefit from online loan application and management.

Additional Read: Types of Home Loans

Now, take a look at some things that you should know before applying for a Flexi Hybrid Home Loan.

The First 4 Years Are a Principal Holiday

Typically, each EMI for a home loan consists of payment towards the principal and the interest. But, when you opt for a Flexi Hybrid Home Loan, for the first 4 years, you can pay a lower EMI that comprises only interest. There after, EMIs will consist of both interest and principal. So, you can use this time to plan your finances for future repayment. Furthermore, you can use this time to master your financial discipline to ensure timely repayment through the rest of the tenor.

You Can Re-avail the Part-prepayment Amount

Any part-prepayment that you make on your loan helps reduce your repayment burden by lowering the principal. However, this loan offers you benefits in a different manner. When you make a prepayment, the lender sets aside this sum instead of deducting it from the principal. Then, should you need funds at a later date, you can avail the amount that you have prepaid at an extremely low rate of interest. Besides, you only have to pay interest on this loan.

Additional Read: Tax Exemption For Home Loan

You Can Close Your Loan Before the Lapse of the Tenor

After you make a prepayment and avail the amount as a loan, when the Flexi Hybrid Home Loan’s balance is equal to the amount that you have prepaid, the lender will use it to close your loan prematurely. If you don’t withdraw the sum as a loan, when the Flexi Hybrid Home Loan’s balance is equal to the amount that you have prepaid as well as the interest that you have been paying on it, the lender will use these funds to close your loan ahead of the tenor. In this way, the loan will allow you to clear your outstanding debt faster.

You Have to Fulfil Simple Eligibility Criteria

Just like every other loan, this loan to has eligibility criteria that you need to meet in order to qualify for it. You must be below 50 years of age and ensure that the property that you are seeking a loan against isn’t under construction.

Understand the Associated Fee

Apart from a processing fee, you also have to pay a fee every financial year to avail the many perks that come with a Flexi Hybrid Home Loan. Ensure that you understand the fees that you have to pay in advance so that you can budget for it and plan repayment accordingly. Also, note that the unique features of this loan make repayment easy, thereby reducing your risk of defaulting. As a result, you don’t have to worry about paying penal interest.

Additional Read: Home Loan without down payment

Knowing these things before borrowing a Flexi Hybrid Home Loan will help you make a financially sound decision. Besides, when you choose this loan from Bajaj Finserv, you can make use of pre-approved offers and further enhance the benefits that you accrue. To check your pre-approved offer now all you have to do is enter a few basic details.