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Wednesday, 19 August 2015

Standard Chartered - Home loans and Home Saver

Standard Chartered is India's largest international bank with 99 branches in 42 cities, and they've been operating here since 1858. They build their products and services around you and have a number of commitments to help ensure that their customers have the best possible experience with them.

Standard Chartered Home Loan comes with an easy financing solution featuring low interest rates and unrivalled levels of service.

Features of Home Loan :

Great Savings : They offer variable and semi-fixed rate housing loans with just a one-time processing fee. No hidden charges

Tailored to your needs : Loans available for ready/under construction flat or house, home extension and renovation.

Flexible Tenure : It offers home loans for salaried and self-employed customers with a wide range of tenure, from 5 years to 20 years

Refinancing Options : You can also transfer your existing loan to a lower interest Standard Chartered Bank Home Loan and save money

Benefits :

  • Insurance Products:
  • Home Loan Protector : Home Loan Protector is a product, which protects your family from the burden of repayment of the home loan in the unfortunate event of your death.
  • Home Protector : HHP plan combines property and home content insurance in one policy. You can choose to take insurance for combinations of these components or for a single component. Home contents offers insurance for the belongings of the customer inside the house. Home Protector covers the property from damage due to natural calamities.
  • Refinance your loan : Transfer your existing high interest loan to a lower interest Standard Chartered Bank home loan (as per the applicable current rates) and save on interest. We will also finance the prepayment charges if you so wish.
  • Tax Benefits
  • Top Up Loan

Pricing : 

Effective MCLR as of 1 April 2016 

 Tenor       MCLR 
Overnight -  8.45% 
1 month  -  9.20% 
3 month -  9.35% 
6 month -  9.45% 
1 year -  9.45% 
2 year  - 9.45% 
3 year -  9.45% 
>3 year -  9.65%

Indicative rates before April 1, 2016

                                    Semi Fixed - 1 Year     Variable 
Home Loan – Normal           9.95%                  10.10% 

Fees and Charges:

1. Pre-closure fees -  NIL fees on floating rate loans to individuals

   For other* categories of loans: 
   Home loan - 2.5% of the principal outstanding** 
*Includes fixed/ semi fixed rate loans, and loans to non-individuals also **Here Principal outstanding refers to the principal outstanding at the time of closure, as well as the amount part pre-paid in the same calendar year which has not been charged
2. Part pre-payment Fees - NIL fees on floating rate loans to individuals 
    For other* categories of loans: 
• NIL for part pre-payments less than 25% of the principal outstanding in a calendar year Home loans 
• For part pre-payments greater than 25% of principal outstanding in a calendar year - 2.5% of the entire amount being paid.
3. Processing Fees For loans < 25 lakhs, flat fee of INR 2,500 For loans > 25 lakhs, upto 1% of sanctioned amount, subject to minimum of INR 10,000

4. Switch Fees - 0.75% of the principal outstanding.

5. Conversion Fees - 1.50% of the principal outstanding.

6. EMI cheque bounce charges -  495/- per instance

MCLR/Base Rate/Benchmark Prime Lending Rate : 

Marginal Cost of funds based Lending Rates (MCLR)
All rupee loans sanctioned and credit limits renewed with effect from 1 April 2016 shall be priced with reference to the MCLR, which will be the internal benchmark for such purposes.
Base Rate
Base Rate of the Bank is 9.75% p.a. with effect from August 7, 2014
The Base Rate has been arrived at considering the 6 - 9 months Term Deposit rate blended with Current and Savings Account (CASA) cost, and other elements that are common across all categories of borrowers. For customers whose interest rate is linked to Base Rate, any revision in the Base Rate will impact the interest rate.
The margin between your variable rate of interest and base rate will be determined by factors such as credit grading of the customer, quality of the collateral, risk profile of the industry/sector, account behaviour / conduct, product level allocable costs etc. and changes in these factors may result in upward or downward revision of the margin.
Mortgage Variable Reference Rate :
The interest rate on your floating rate Mortgage loan is linked to the Mortgage Variable Reference Rate (MVRR) and any revision in this rate would impact your interest rate. The MVRR, effective August 7, 2014 stands as:
Home Loan MVRR is 19.75%
Loan Against Property MVRR is 20.75%

Home Savers :

Along with Home Loans, Standard Chartered provides Home Saver service too.
HomeSaver is a unique home loan that enables you to pay your home loan in half the time, at half the cost. With a HomeSaver loan, interest is calculated on daily balance and applied monthly.

How it works :

A linked Transaction Account will be associated with your Home Loan.
The surplus money in your Linked Transaction Account will be used to offset the principal of your home loan, which will result in faster closure of your loan.
Effectively, interest will be paid only on the difference between the outstanding loan amount and your surplus funds.
The chart below demonstrates how HomeSaver works:
chart image

Benefits :

The table and graph below show how you can save on interest costs as well as shorten the tenure on your loan by opting for HomeSaver:
Normal home loanHomeSaver
Loan amount10,000,00010,000,000
Loan tenure (months)240240
EMI (Rs.)99,838103,219
Initial DepositNA1,000,000
Monthly Savings deposited in HS a/cNA35,000
Total interest repaid (Rs.)13,961,1176,415,525
Savings on interest (Rs.)-7,545,592
Actual repayment period (months)240120
Tenure reduced by (months)-120
chart image
The rates used above are just for demonstration purposes
The interest rate applicable to your loan will be specified in your Sanction letter
Savings Compared to Normal Homeloan :
Savings on interest : 54%
Reduction in Tenure : 50%
Documents Required :
The primary documents required when you are applying for a loan are as follows:

  1. Application form with self-attested photograph
  2. Proof of identity, age and residence
  3. Bank statement
  4. Income documents
  5. Cheque for the processing fee
Additional documents may be needed. In these instances, they will provide you with details at the time of application.
Loan Amount :
Minimum Loan Amount : 5 lakhs
Maximum Loan Amount : 10 Crore

Services Guaranteed:
1. 5 Days Loan Approval : We guarantee to decision your Business Installment loan application within 5 business days, or compensate you with INR 500/- per day of delay, subject to a maximum of INR 5000/-
2. 24 Hrs SMS Callback :  When you send an SMS to our dedicated mobile number, we will call back within 24 hours, or compensate you with a payout of INR 100/- 
To know more details or to apply online : 
Visit the website
You can also use SMS Guarantee service :  9980033333


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  2. Thank you for sharing such great information. It has help me in finding out more detail about Home Loans!