HDFC lowers home loan rates
By Joseph Samson
Dec 4, 2009
Print    Email    RSS   

HDFC, India's largest mortgage lender has introduced a new home loan scheme that carries an interest rate of 8.25 percent per annum up to March 31, 2012 and floating rate for the remaining tenure.

This is 50 basis points lower than the current rate of 8.75 percent on loans amounting to Rs. 30 lakh.

The bank said, "This is a flexible product with dual rates. The rate of 8.25 per cent per annum is applicable up to March 31, 2012, for all new loans irrespective of the loan amount." However, rates for existing customers have not been altered.

According to a banking observer, the move is aimed at luring customers who are concerned about rate hike in coming months.

Renu Sud Karnad, Joint MD, HDFC, said, "There is ample liquidity in the system. The banking system continues to park around Rs 1 trillion with RBI through reverse repo. We have been able to bring down our costs due to improved operational efficiency and good quality portfolio. Based on current marginal cost of borrowing a special festive offer is being made to new customers to reduce the cost for the home buyer.

HDFC pointed out that the offer would be applicable to all new home loan customers who apply before January 31, 2010 and take at least part disbursement before March 31, 2010. It also revealed that while fixed rate would remain fixed, the floating rate would vary with the loan amount.

Seeing a huge potential in the education loan segment, the lender has forayed into the segment by announcing a 41% stake in Credila, an education loan provider.


(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Refinancing your home loan: is it a...
Can we claim tax benefits on home loan and...
Prepayment on loans: 'To do or not to do'
Fixed or floating interest rate home loan:...
What if you default on your loan?

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive