A loan for a period of 4-30 years. The interest rate changes once every 13 months, two years, 3 years, 5 years or 10 years, based on the borrower's request when taking the loan.
A change in the interest rate in any of the other periods, following the initial period, shall be calculated according to an objective external anchor (as defined in the loan documents), less or plus the margin from the anchor applicable upon granting the loan.
This loan can be paid at an earlier date without payment of interest differential capitalization fees, on any of the interest change dates.
Who might benefit from this loan?
A variable interest CPI linked loan may be appropriate for those who wish to enjoy a potential decline in future interest rates.