|
Home
finance rate war begins
HDFC
cuts interest rates by 25-50 bps
Our
Banking Bureau
Mumbai, Oct 17: The Housing Development Finance Corporation
(HDFC) on Wednesday cut its lending rate by 25 basis points
(bps) and 50 bps for its fixed-rate and floating-rate loans
respectively. HDFC’s retail prime lending rate has been reduced
by 50 bps to 12 per cent from 12.5 per cent, while a 25 bps
cut in deposit rates also been effected.
| ...ICICI
Home Fin by 25 bps across all tenures |
|
Our Banking Bureau
|
Mumbai, Oct 17: ICICI Home
Finance has reduced its interest rates on loans by 25
basis points (bps) across various maturities.
For resident-Indians, for tenures of one to five years,
the new rate is 10.50 per cent as compared to 10.75 per
cent earlier; for six to ten years, it is 12 per cent
(12.25 per cent); for 11 to 20 years, 12.25 per cent (12.50
per cent); for 21 to 30 years, 12.5 0per cent (12.75 per
cent).
For non-residents, the new rate is 10.50 per cent (10.75
per cent) in case of one to five years; six to ten years
will be at 12 per cent (12.25 per cent).
Said ICICI Home Finance’s managing director, Madhabi Puri
Buch: “We hope that by bringing interest rates to such
attractive levels, we will be able to help many more prospective
customers take the home purchase decision”. The new home
loan rates also offer an opportunity of even higher savings
for people holding high cost loans that they may have
taken over the last 4-5 years.”
The new home loan rates also offer an opportunity of even
tighter savings for people holding high cost loans that
they may have taken over the last four to five years.
ICICI’s Balance Transfer product allows a person with
an existing loan to transfer to the ICICI loan in a convenient
way. ICICI Home Finance finances both the prepayment charges
of the old loan and processing fee for the new loan. A
customer who took a Rs 10 lakh loan for 15 years in 1996
at the then prevailing rates of 18 per cent, would save
over Rs 3.60 lakh in interest payments, and also enjoy
tax benefits as applicable to normal loans. |
Effective Wednesday, HDFC’s lending rate
for a loan with a 11-15 year tenure will be 12.25 per cent,
down from 12.5 per cent while for the floating rate segment,
it will be 12 per cent.
Loans up to Rs two lakh for a tenure of up to five years would
carry an interest of 10.50 per cent; 11.25 per cent for loans
between 6-10 years; and 11.50 per cent for 11-15 years. For
loans above Rs two lakh of tenure up to five years, the rate
would be 10.50 per cent; 12 per cent for 6-10 years; and 12.25
per cent for 11.15 years.
HDFC has also announced a special discount of 1 per cent of
the processing and administration fees for housing loans for
a month.
Announcing a series sops on the occasion of the institution’s
silver jubilee celebration, HDFC’s executive director Renu
S Karnad said that the new annual interest rate of 12.25 per
cent for loans above Rs two lakh is the lowest in the last
20 years. With income-tax benefits added to the loan, the
actual interest rate is as low as 8.5 per cent for borrowers.
“The housing industry is now stable and we do not see the
prices going up in near future... hence we think this is the
right time for people to buy their own house,” Ms Karnad said.
|
