4 Things to Consider before Applying for the Flexi Hybrid Home Loan

By on October 4, 2018
Flexi Hybrid Home Loan

It takes a lifetime for people to buy a home of their choice as the cost of a dream home is always on the higher side. People don’t have enough money on their own to buy a dream home.

People even looking to avail a home loan to fund their homes are reluctant for it as they need to pay EMIs for an extended period as it affects their monthly budget for long.

What’s more, modern-finance has led to many leading non-banking finance companies (NBFCs) developing many products to help people to avail a home loan. In the same context, a concept called the Flexi Hybrid Home Loan is offered by leading home loan financers to help people feel less pressure of serving a home loan.

What is Flexi Hybrid Home Loan?

A Flexi Hybrid Home Loan is a unique facility by reputed home loan lenders where you need to pay only the interest as EMI on the availed home loan and nothing else. There is a 4 year holiday from paying interest which helps you plan your finances better.

However, before you get started to avail the Flexi Hybrid Home Loan facility, you should consider some aspects of it so as to make the most of it. Let’s know more:

  • The first 4 years are a holiday for principal repayment

A conventional home loan payment comprises of payments towards interest and the principal. However, availing the Flexi Hybrid Home Loan, for the initial 4 years, helps you pay a lower EMIs consisting of only the interest component. Once the initial 4 years are over, you will need to pay both – interest as well as the principal. Thus, you can at least use these 4 years to plan your finances for further repayment. Also, planning during this time helps you in timely EMIs in the future.

  • You are free to avail the paid part prepayment amount

Did you that any part-prepayment made towards the flexi home loan that you make towards it can help you reduce the overall loan burden? But what’s so uncommon about it? When you make a part-prepayment, the creditor sets aside the sum instead of reducing it from the principal. If you need some money later, you can enjoy using the same amount that you paid at a lower rate and pay only interest on it.

  • You can foreclose the loan before the tenor

If you don’t withdraw the money which you paid for prepayment when the balance of the hybrid home loan is equal to the figure already paid along with the interest, then the creditor may use the figure to foreclose the loan before tenor’s end. Like this, the hybrid home loan will allow you to clear the unpaid debt much faster.

  • There is a simple eligibility criteria to fulfill

Just like any other loan on the earth, even the Flexi Hybrid Home Loan has some eligibility that you need to fulfill. You need to be below 50 years and ensure that you are not availing the loan for an under construction building.

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The Bottom Line

A Flexi Hybrid Home Loan can help you avail a home loan to purchase your dream home without stressing too much about the repayment part for at least 4 years. Like this, it can help you plan your future EMIs better. You can apply for a flexi home loan online as you are ready for it since you have an idea what to consider and what not.


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