Hudco reduces interest rates up to 0.75%

Our Economic Bureau

New Delhi, Nov 5: The Housing and Urban Development Corporation (Hudco) on Monday cut the interest rates up to 0.75 per cent for individual borrowers under its loan scheme, Hudco Niwas. Similarly, the corporation has reduced processing and administrative fees by 0.20 per cent. The new rates will be effective from November 1.

Disclosing this at a press meet here on Monday, chairman and managing director V Suresh said,‘‘The new rates would cover loans ranging between Rs 2,00,001 to Rs 20,00,000 and Hudco Niwas would offer laons at 11.75 per cent for five-years repayment period, 12 per cent for six to 10 years term and 12.25 per cent for period ranging between 11 to 15 years.’’

The overall benefit to applicants range from Rs 4,487 for the lowest loan of Rs 50,000 and Rs 3,91,436 for loan of Rs 50 lakh.

‘‘The decision to reduce interest rates was taken further at corporation’s board meeting on Oct 31 last which cleared an across-the-board reduction in interest rates.’’ Mr Suresh said the board had sought to announce rate cut just after the announcement of credit policy by RBI but postponed its decision in order to consider the exact quantum of the reduction for its retail lending scheme keeping in view the cut in the lending rates by other housing finance companies such as HDFC and Maharishi Housing Development Finance Corporation.