PNB Housing starts Flexi rate scheme
By Our Banking Bureau | 14 Mar 2002
New Delhi: PNB Housing Finance has announced the introduction of a new scheme, Flexi Apna Ghar Yojana, a combination of fixed rate and variable rate schemes. The scheme will be offered in addition to the existing fixed rate scheme, in which the interest is fixed for the full term.
The new scheme, which will be introduced with effect from
1 April 2002, will offer borrowers three options. Option
one will be the one-year flexi scheme, in which the interest
rate offered will be in force up to the current financial
year ending on 31 March, plus one subsequent year and,
thereafter, the prevalent rate for flexi scheme up to
one-year option will be applicable automatically for another
period of one year up to next 31 March.
Thereafter, every one
year as on 1 April, the then current rate of interest applicable
for the flexible one-year scheme will be applicable. To start
with, the interest will be 11.75 per cent per annum.
Option 2 offers an interest rate reset every three years -
initially, the remaining period of the financial year in which the
loan is availed of plus three financial years. The starting
interest rate will be 11.50 per annum.
Under the third option, the interest rate offered will be reset
every five years. The starting rate of interest will be 12 per
cent.
Borrowers can choose any of the three options based on their perception of the interest rate scenario. No extra charge will be collected for the automatic change of interest at the end of the option period.
Switchover will not be permitted during the currency of the contract period. But, it will be allowed at the end of the option period every time.
