The Hindu : Birla Home Finance's unique scheme

Online edition of India's National Newspaper
Friday, Nov 15, 2002

Business

Business

Birla Home Finance's unique scheme

By Our Corporate Reporter

CHENNAI NOV. 14. Birla Home Finance, a 50:50 joint venture between Chambal Fertilisers and Chemicals and BHW Holdings AG of Germany, has launched easy home loan deposit scheme in Chennai.

Launching the scheme, Klaus Baetz, Executive Director, Birla Home Finance, said the scheme was targeted at salaried class, businessmen, traders, shopkeepers, factory workers and government employees. Any individual in the age group of 18-54 would become a member.

Elaborating on the scheme, Sanjay Khosla, General Mangaer, said it would entitle a member to save on a monthly/quarterly basis for 3-5 years with 5 per cent compounded interest.

After the completion of the specified period, the member would be eligible for a home loan at a concessional rate of interest for purchasing or constructing residential house. The scheme would consist of two phases — savings phase and loan phase. The company would offer its member loan at guaranteed 7 per cent interest on annual reducing balance.

Mr. Khosla said the company had obtained permission from the Reserve Bank of India for extending loans to non-resident Indians.

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