Housing finance major HDFC reduced its home loan rate to 8.25% for the 1st year under its new dual rate scheme, usually called as teaser loans, valid for fresh loans.
Under the scheme, HDFC would give a fixed rate of 8.25% up to March 2011, then 9% for the 2nd year and the present floating rate for the rest of the loan period.
A statement released by HDFC said, “This is a flexible product with dual rates. The fixed rates are applicable for all new loans irrespective of the loan amount”.
HDFC said that besides the new dual rate scheme, its current floating rate product would remain same where rates are 8.75% for loans up to Rs 30 lakh (Rs 3 million), 9% for loans between Rs 30 lakh and Rs 50 lakh (Rs 5 million) and 9.25% for loans of Rs 50 lakh+.
Publicizing the new scheme, HDFC MD Renu Sud Karnad said that the company got ‘overwhelming’ response to its previous dual rate offer and its cost of funds has now permitted introducing a ‘lower initial fixed rate’.
She said, “This special offer is applicable to all new home loan customers who apply before April 30, 2010, and take at least part disbursement before June 30, 2010.”
HDFC said that the actual rate on its new scheme was ‘very attractive’ and “much better than other big players in the market providing similar products” for a loan period of 15 or 20 years.