Before taking a long term loan a person should find out which repayment facility is suiting him. For the repayment option banks have customized their terms as per the requirement of the clients. Let’s discuss the different type of repayment option a loan seeker can get.
SURF (Step up Repayment Facility):
This is the loan which has been set up by banks to facilitate its customers to pay back their loan in the EMI’s. This mode of repayment is for the customers, who are just starting their career. This repayment method allows the customers to get a large amount for the long term with the short EMI’s options. Their EMI can be greater as they earn more. This is a floating loan.
FLIP (Flexible Loan Installments Plan):
This is repayment type which suites the persons who are close to end of their careers. EMI’s are large at the start of the loan period then it decreases as the time goes on in the proportion. This payback facility insures the retiring people to repay their installments and appreciate the Youngers to get involved in it.
This is basically for the long run where customers have applied for the large sum of an amount. This loan repayment has been equally divided into the installments. Customers have to repay the loan amount till the time full loan amount is recovered by the bank. This loan type gives you an advantage of paying fix amount or full amount at once and enable you to save some money.
ARS (Accelerated Repayment Scheme):
This is another customize option for the customer by banks. Let’s assume that installments which a borrower has to pay are $ 20,000 but he is able to pay $ 30,000. So he can request the bank to increase the installment amount and because of shorter payback period borrower will be getting the tax benefits and loan amount can be paid quickly.
This facility is very similar to SURF but with a big modification. In this option customer has to pay approximate one-third of the loan amount as the last installment. This is big and lump sum repayment made by the customer at particular period or at the end of the loan period.
It is a tool provided by banks to their customers to get a higher amount of loan with the securities getting mature at the time of loan sanction. This typical loan is good to take when financial needs are too high or any other urgent requirements.
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