The EMI waiver is here

In these difficult times for real estate and home loan segment, banks and housing finance companies (HFIs) have found a new method to attract borrowers – home loans with EMI waivers. It does not mean that borrowers would not have to pay EMIs, but could get up to 12 EMI waivers with some riders.

The offer is for borrowers who are disciplined in their repayment commitments. Some banks and HFIs give six months’ EMI waiver for those who repay continuously for the first 10 years to 15 years.

For example, on a ₹30 lakh home loan at 8.50% rate of interest for a period of 20 years the EMI would be approximately ₹26,000.

If any borrower pays without a single cheque bounce or non-repayment issues for the next 10 years the lender would offer waiver of ₹1.56 lakh (₹26,000 x 6 months). After another 5 years of continuous repayment of EMIs, another 6 months of EMI waiver can be obtained. Overall the savings would be ₹3.12 lakh.

This offer is for a limited period. The loan application has to be submitted before February 29, 2020, and the disbursement should happen before March 15. The extent of loan amount and other terms and conditions could vary with each lender.

The offer would become null and void if there is any non-repayment of EMI during the loan tenure and if there is any pre-payment / pre-closure by the borrower.

The borrowers cannot transfer the loan from one bank to another.