|The home loans provided by the Standard bank offers a flexibility in interest rates as well as repayment options. Getting a housing loan from the Standard bank is now made as easy as possible. All you have to do is decide on the amount required as home loan and decide the interest rate acceptable to you. Once both the things are decided, you will also have to decide the loan term, that is the period till which the home finance will be required. After all the requirements are fulfilled, the last step is of filling up of the home loan application form and submitting it at the home loan department of the Standard Bank. The base home loan interest rate offered by the bank is 10.50%. Standard bank home loan rates are offered in two types. Lets look at them one by one.
Standard Bank Home Loan Interest Rates
The Standard bank home loan interest rates are:
1. Fixed Interest Rate
2. Variable Interest Rate
1. Fixed Interest Rate: Fixed rates are those rates where in the customers are guaranteed the same rate for a number of years. The financial market is volatile and the price changes everyday. But at Standard bank the fixed interest rate does not get affected by any increase in the prices, inflation or currency depreciation. The bank offers fixed interest rate for 12, 18, 24, or 36 months as agreed by the customer. The benefits of the fixed interest rates are that it grants protection against the rising rates, the monthly payments and installments do not vary. The bank offers a flexibility in repayment by giving the liberty to switch over from a fixed interest rate to a variable rate of interest whenever the customer wishes so. However, the bank charges a penalty for using this facility. It charges 1.5% as penalty charges if you want to change over from your existing fixed interest rate to a new variable rate of interest.
2. Variable Interest Rate: Variable interest rate as the name suggests keeps varying and does not remain the same on every due date. The customer who does not wish to pay heavy repayments initially can go in for a low variable interest rate for a period of 12 months and then can change over to higher rates. On the other hand, if customers wish to pay back the loan at an early stage, then such customers can choose higher rate for an initial period and lower their rates later on. Variable rate starts from 10.50% and varies depending on the loan amount, market scenario – inflation and the number of years of repayment chosen by the customer. A customer can switch over from a variable interest rate to a fixed rate of interest. This is possible only after 12 months of the loan period. Here also the customers will have to pay a penalty of 1.5% on the outstanding amount if he/she wishes to change the rate of interest.
For current Standard bank home loan interest rates you can contact the bank personally on their number +27 11 299 4701 or visit the link given below: