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| Barclays launches 'Semi-Fixed Loan against Property' |
| Announcement / Corporate Nov 23, 2009, 17:20 IST |
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Today, Barclays Global Retail Bank (GRB) India launched ‘Semi – Fixed’ Loans against Property (LAP) a first-of-its-kind in this category. Through this feature, customers availing of LAP, will be given a fixed interest rate for the first two years after which the rate of interest will become variable. This offering would help customers limit their interest rate risk.
Currently, most LAP offerings come with a variable rate of interest for the tenor of the loan. However, the offering by Barclays is unique wherein the 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 their repayment of their EMIs (equated monthly instalments) will benefit from a drop down of interest rates too similar to the offering of ‘Drop Down Facility’ launched previously for Business Instalment Loans.
“At Barclays, the customer always comes first. After the success of the Business Loans offering Drop Down Facility, we are proud to launch a product that will not only revolutionise LAP 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 by way of the differentiated repayment structure they will enjoy. We are certain that this offering will help Barclays LAP customers manage their finances far more efficiently,” said Ram Gopal, Interim Managing Director and COO, Barclays GRB India.
Additionally during the first two years, Barclays customers who are regular in their EMI repayments will benefit from a ‘Drop Down’ in the rate of interest charged over this period. Barclays will offer a competitive on-boarding interest rate and after the first twelve months, customers who meet all their EMI repayment commitments will receive a reduction in the interest rate by a fixed percentage. Further reduction in interest rates will again take place after 18 months of regular repayments thereby reducing the effective interest rate in the fixed rate tenure considerably.
Speaking on the product feature, Suvrat Saigal, Director – Consumer Banking, Barclays GRB India said, “Innovation is at the core of any offering from Barclays. We feel that combining a semi–fixed rate of interest and the unique ‘Drop Down Feature’ will encourage customers to avail of the Barclays Loan against Property for their financial needs. In a market that has been shaken by credit and delinquency issues, products will now have to be innovative to ensure that both the customer and the bank are working closer together. We are confident that this will be a very successful offering.”
Barclays GRB business has built a strong franchise in India over the past two and a half years with over 900,000 clients and customers. Barclays continues to be committed to India through its six entities including Global Retail Banking, Barclays Capital, Barclays Wealth and specialist technology and BPO centres of excellence. India is one of the leading markets for Barclays Bank Plc.
About Barclays Global Retail and Commercial Banking (GRCB):
Barclays Global Retail and Commercial Banking (GRCB) encompasses all of Barclays retail and commercial banking businesses around the world. Operating in 28 countries, Barclays GRCB comprises UK Retail Banking, Barclays Commercial Bank, Barclaycard, GRCB Western Europe, GRCB Emerging Markets and GRCB Absa (Barclays Bank PLC owns 58.8% of Absa Group Limited). Barclays GRCB serves 49 million customers and clients around the globe through a network of more than 4,800 distribution points.
To find out more about the individual Barclays GRCB businesses, please visit our website www.barclays.com
About Barclays:
Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with an extensive international presence in Europe, the USA, Africa and Asia.
With over 300 years of history and expertise in banking, Barclays operates in over 50 countries and employs over 140,000 people.
Barclays moves, lends, invests and protects money for over 49 million customers and clients worldwide.
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