Q. What is the scheme? What do you mean by EPR?
A. It is an interest free scheme. Customer will not be paying any interest on the amount taken from the financial institution to buy the property. He will pay back only the total amount taken in 100 equal monthly installments. This equal monthly installment of the principal component is called Equal Principal Repayment (EPR).
Q. How ‘Zero’ interest is possible?
A. It’s a unique & one of its kind arrangements between financial institution & the developer. This special initiative is brought to you by Investors Clinic.
Q. What is the duration for principal repayment?
A. Duration of principal repayment is 100 months. The balance principal amount after paying the required self-funding contribution to the developer will be divided into 100 equal installments knows as EPR.
Q. How is it different from traditional home loan?
A. The biggest difference between both the schemes is huge saving on interest which otherwise the customer would have paid in any traditional housing loan scheme. Duration of this scheme will be for 100 months against the traditional home loan period of 240 months saving almost 12 years of loan tenure, thus enabling customer to re-use his loan eligibility after 8.33 years.
Q. Who is eligible for this scheme? What are the eligibility criteria?
A.All persons eligible for taking a home loan are eligible including salaried, self-employed etc. Eligibility criteria of individual clients will depend upon their monthly income & credit rating.
Q. What is the Age criterion for this scheme?
A. In this scheme person’s up to 55 years of age can take Interest Free Loan as the duration of this scheme will be for 100 months against the traditional home loan period of 240 months.
Q. What are the documents required?
A.The first set of documents required are KYC of the customer, income documents, i.e. 6 months’ salary slip & 6 months bank statement in case of salaried, 2 years ITR with computation of income & 1 year bank statements in case of self-employed. Depending on person’s credit rating more documents could be required.
Q. What if I am not eligible for 80% Interest Free Loan or if I want to take less than 80% Interest Free Loan instead of complete 80%?
A. The pro-rata calculation will be applicable here. Customer will have to pay the balance amount to the developer as per the applicable pro-rata. You can take the loan amount less than 80%, in that case also Interest Free Loan amount will be divided in 100 equal installments almost the same as you pay for in a 20 years traditional loan.
Q. What is the Transfer Policy of the units?
A. The Transfer is allowed after 50% payment of the unit has been done and first transfer is free.
Q. Will fluctuating interest rates depending on government’s policies affect me?
A. No impact on customer of monetary policy as you have to pay only the Principal Amount.
Q. What if I want to resale the property after a certain period? Is this Interest Free Loan transferable?
A. Yes you can resale your property anytime you like. The prospective buyer can take full advantage of tenure of up to 64 months, paying only the EPR. You can also charge a premium on your property as the next buyer will also get the same benefit of zero interest for the balance tenure of the EPR.
Q. What if in case developer delays offer of possession?
A. You will get your dream home on a date range as promised by the developer. However in case of any unfortunate delay, the developer will pay heavy delay penalty. The penalty charges will be higher as compared to other projects in that area.
Q. Can I get possession of my property & can get it registered before completion of 100 months?
A. Yes you can get the possession of property and can get it registered before 100 months as this has nothing to do with Interest Free Loan tenure.
Q. Is loan facility available in non-metro cities?
A. Facility is available in all major metros & tier 1 cities. The financial partner is in the process of establishing its contact points in tier 2 & 3 cities. Please do check with your service associate for a specific list.