Special Correspondent

THIRUVANANTHAPURAM: The Housing and Urban Development Corporation Ltd (HUDCO) has effected major reductions in its floating lending rates ranging from 1.5 per cent to 4 per cent for its housing loans.

An official press note released here on Thursday said that in respect of the social housing sector covering Economically Weaker Sections (EWS), and Low Income Groups (LIG), the new floating rates would be 7 per cent to 7.50 per cent instead of 8.5 per cent to 9 per cent.

For the affordable housing through the private sector, for loans up to Rs.15 lakhs, the rate will be in the range of 9.5 per cent to 12 per cent base on loan slabs as compared to the 13.5 per cent earlier. For loans of more than Rs.15 lakh, the rate of interest is being reduced to 13 per cent from the earlier 13.5 per cent.

In addition, under its individual home loan portfolio, an overall reduction of 0.25 per cent will be provided, in the fixed rates, from 13.75 per cent to 13.5 per cent, and an additional reduction of 0.75 per cent will be provided to women beneficiaries, and all beneficiaries belonging to the SC/ST categories. Thus, for these beneficiaries, the effective new fixed rate will be only 12.75 per cent.

Further, in case of floating rate loans the rate of interest is being reduced to 9.25 per cent for long term and 8.75 per cent for short term.