HDFC on Thursday launched Dual Rate Product-2 (DRHL-2), a special home loan product at a fixed rate of 8.25 per cent annually up to March 31, 2011, 9 per cent for the period between April 1, 2011, and March 31, 2012, and the applicable floating rate for the balance term.
“This is a flexible product with dual rates,” HDFC stated.
The fixed rates are applicable for all new loans irrespective of the loan amount.
The existing floating rate product continues without any change where the rates applicable are 8.75 per cent for loans up to Rs.30 lakh, 9 per cent for loans between Rs.30 lakh and Rs.50 lakh and 9.25 per cent for loans of Rs.50 lakh and above.
Speaking on this announcement, HDFC Managing Director Renu Sud Karnad said “the response to the earlier dual rate scheme was overwhelming and with our cost of funds permitting us to offer a lower initial fixed rate, we have introduced the DRHL-2. This special offer is applicable to all new home loan customers who apply before April 30 and take at least part disbursement before June 30.''
While the fixed rate will remain the same irrespective of the loan amount, the floating rate will vary with the loan amount. Under this offer the floating rate has two slabs, that is, loans up to Rs.30 lakh where the rate will be 9 per cent and above Rs.30 lakh where the rate will be 9.25 per cent.
“Even though there is a marginal increase as compared to the earlier offer, our effective rate over a 15 to 20-year term is very attractive and is much better than other large players in the market offering similar products. As a special gesture we would also allow the option to all customers whose loans are fully undisbursed as of April 14, to convert to this product without any conversion fees,” he said.
The special interest rate under DRHL-2 is also available to non-resident Indians and persons of Indian origin (PIOs). Self-employed customers can also apply under the DRHL-2 and avail themselves of the same special interest rate offer.”
“Housing finance is a specialised product where each loan is customised to suit individual requirements. The interest rate is just one aspect in the entire value chain. People who want loans want to know whether they can trust the developer, they want value-added information. Our experience of being in this field for over three decades have made it easy for us to understand the customer needs better. We guide and handhold the customer right through the process of buying his dream home. Be it advising him on the property, documentation, quality of the developer, etc. These services provided by us are unmatched,” said Ms. Karnad
Disbursements
Loan approvals during the nine-month ended December 31, 2009, amounted to Rs.44,110 crore as compared to Rs.33,820 crore in the corresponding period last year, representing a growth of 22 per cent. Loan disbursements during the same amounted to Rs.33,527crore as compared to Rs.27,211 crore in the corresponding period last year, representing a growth of 23 per cent.
