Recently, Standard Chartered Bank launched an interest-only home loan facility for its existing as well as new home loan customers on the purchase of completed residential properties. An interest-only home loan is a facility in which the borrower pays only the interest accrued on the principal outstanding for a limited period of the loan tenure. That period is referred to as the ‘interest-only period’. No principal amount will be deducted during this period.

Borrowers of Standard Chartered with a home loan ticket size of 35 lakh to 3.5 crores can choose to pay only the interest amount via equated monthly installments (EMIs) for an initial period of 1–3 years.


Standard Chartered bank says an interest-only home loan helps in lowering monthly repayments for up to 36 months, thus helping in boosting cash savings.

More savings means more cash in hand, which can be utilized for home improvement, renovations, personal needs, and more, the bank says.


Even though there is an interest-only period, customers will get the option to commence their EMI – principal, and interest – earlier.


Only “resident Indians” can avail the interest-only home loan.

The loan amount ranges from Rs 35 lakh to Rs 3.5 crore.

There will be a flexible repayment tenure of up to 30 years for salaried and 25 years for self-employed employees.

In Bengaluru, interest-only home loans will be offered to only salaried customers.

The borrower can choose an interest-only period for 12, 24, or 36 months.