Housing finance provider HDFC Ltd. has also introduced a fixed cum floating rate home loan scheme. Soon after competitive peer ICICI Bank launched its dual rate home loan scheme recently, HDFC seems to have decided to follow suit.
HDFC's scheme christened as ‘Fixed First' brings two options to the borrower. In one scheme, the borrower gets to avail fixed rate loan for 3 years tenor and in the second the tenor is for 5 years.
Following the fixed rate tenor, the loan would get converted to a floating rate one corresponding to adjustable home loan rate of HDFC.
The offer is valid till October 31, 2011. It is available along with the pre existent home loan schemes of the housing finance major.
"This option is for customers seeking to lock in their home loan interest rates and not take risk on interest rates moving up in the initial years,'' said HDFC via a release.
In the three year scheme, interest rates are 10.75% for upto Rs 30 lakh, 11.25% for Rs 30-75 lakh and 11.75% for over Rs 75 lakh.
For the five year scheme, interest rates are 11.25% for Rs 30 lakh, 11.5% for Rs 30-75 lakh and 11.75% for over Rs 75 lakh.