New Delhi, Sept. 11: The Housing and Urban Development Corporation Ltd (Hudco) today slashed interest rates for both fixed and floating rate home loans.
The new rates for Hudco Niwas Yojna will vary between 10.25 per cent and 11 per cent. The fixed rate loans will be available in a range of 10.25-11 per cent for five years, 10 years and 15 years, down from a flat rate of 11 per cent existing till now. For the fixed rate loans, the interest has been fixed at 10.5 per cent instead of the earlier 11 per cent.
“Applicants from the armed forces, police, handicapped, widow and employees of both state and central government, artists and journalists will get the benefit of lower processing charges of 0.08 per cent as against 1 per cent that was the rule,” Hudco chief managing director Pankaj Jain said.
The move has brought Hudco on a par with other players like HDFC, SBI, ICICI, LIC Housing, PNB Housing, Canfina Homes and Dewan Housing who had already cut down on interest rate after the fall in interest loan on the borrowing from the bank.
The other prominent players like Tata Home Finance, GIC, Bank of Punjab, BOB Housing, Central Bank are still operating at a range between 11.5-12.5 per cent interest rate.
However sources from BoB said, “The real estate market is down and we have to do our best to do business. There are discussions going on for bringing the interest rate down. No decision has been taken yet.”