Financial Daily from THE HINDU group of publications
Thursday, Mar 14, 2002
Money & Banking
PNB Housing unveils flexi rate scheme
NEW DELHI, March 13
PNB Housing Finance Ltd on Wednesday 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 April 1, will offer borrowers three options.
Option one would be the `one year flexi scheme' where the interest rate offered would be in force up to the current financial year ended March 31, 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 March 31.
Thereafter, every one year as on April 1, 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 financial year in which 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.
Switch over 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.
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