The National Housing Bank (NHB), on Thursday, slashed the interest rate up to one percentage point on refinance to banks and housing finance companies to promote affordable finance for low income group dwelling in urban areas.

It has now decided to apply a much lower refinance rate by reduction in its lending rates by as much as 0.75 to 1 percentage points under this special refinance scheme for urban low income housing , the NHB said in a statement.

Refinance will be extended for tenures ranging between 5 and 15 years at fixed rates. Interest rates on NHB’s refinance would be 9 per cent against existing 10 per cent for loans up to Rs.2 lakh.

For loans between Rs.2 lakh to Rs.5 lakh, the rate would be 0.75 percentage point lower at 9.25 per cent.

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