HSBC Bank has launched a dual-rate home loan scheme whereby the borrowers will be offered fixed-rate loan for the period between one to five years and after that it will eventually change into floating home loan.

There will be two options available to the borrowers. In the first option, the borrowers will not be required to make any pre-payments during the tenure of fixed-rate home loan. In the second option, the borrower is allowed to make the pre-payment as per certain regulations.

If the borrower takes the loan for the period of one to three years, then the fixed home loan interest rate will be charged 11.25 per cent per annum, and the loan for five-year tenure will attract the interest rate of 11.50 per cent. In case, the borrower opts for the second option, then the bank will charge 25 basis points as interest, which is much higher than the first option.