PNB Housing starts Flexi rate scheme

New Delhi: PNB Housing Finance has 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 1 April 2002, will offer borrowers three options. Option one will be the one-year flexi scheme, in which the interest rate offered will be in force up to the current financial year ending on 31 March, 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 31 March.

Thereafter, every one year as on 1 April, 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 the financial year in which the 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.

Switchover 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.