An associate company of Dewan Housing, DHFL Vysya Housing Finance has decided to cut the interest rate by 0.2-0.5 per cent on home loans from April 1, 2013.
The company is also aiming for 50 per cent growth during the financial year 2013-14.
"We are the first among the HFCs to reduce rate of housing loan by 20 basis points for both existing and new customers under variable interest scheme. But, for the priority sector housing scheme for loan up to Rs 10 lakh there is additional rebate of 30 basis points," said DHFL Vysya Housing Managing Director, Mr. R Nambirajan.
The revised rate will be for the new scheme for housing loans of up to Rs 10 lakh for a period of up to 11 years targeting the priority sector.
Mr. Nambirajan said the announcement in the budget for additional rebate of Rs 1,00,000 allowed in the interest on housing loans, in addition to Rs 1,50,000 already allowed from April 1, 2013 will help in growth of demand from more the middle income groups in the coming financial year.
"We hope to grow by over 50 per cent in 2013-14 against 30 per cent in the current fiscal," Mr. Nambirajan said.
Our disbursements in this financial year will stand Rs 345 crore while, the same will jump to Rs 520 crore in the next year, Mr. Nambirajan said.