Barclays starts semi-fixed loan against property

Barclays Global Retail Bank (GRB) India said it has launched semi-fixed loans against property.

Through this feature, customers availing of loans against property will have to pay a fixed interest rate for the first two years, after which the rate of interest will become variable, a press release issued here said.

This offering would help customers limit their interest rate risk, it added.

Currently, most loans against property come with a variable rate of interest for the tenor of the loan. But the offering by Barclays is different in the sense that customers will be offered a fixed rate of interest for the first two years of the tenor, after which the rate of interest will become variable.

Additionally, customers who are regular in the repayment of their monthly loan installments will benefit from a lowering of interest rates, similar to the facility launched earlier for business instalment loans, the release said.

"After the success of business loans offering drop down facility, we are proud to launch a product that will not only revolutionise loans against property offerings in India by protecting customers from any upward movement in the benchmark interest rates in the first two years but will also encourage customers to make payments in a timely fashion," Barclays GRB India Interim Managing Director & COO Ram Gopal said.