IDBI Homefinance Slashes Rates By Up To 150 Bps

Mumbai, September 16: | Updated: Sep 17 2003, 05:30am hrs
IDBI Homefinance Ltd, which is the new name of the Tata Homefinance Ltd after the takeover by Industrial Development Bank of India (IDBI), has reduced its variable home loan rates by up to 150 basis points (bps). The revised rates will be effective from September 17, 2003.

The company has introduced a tenor-based pricing and also decided to pass on the benefit of the reduced interest rate to the existing customers to 9.25 per cent per annum from the current variable rate of 9.75 per cent per annum. This is with effect of October 1, 2003.

The revised variable interest rates for loans upto five years would be 8.25 per cent per annum, for loans above five years and upto 10 years would be 8.75 per cent per annum, above 10 years and upto 15 years would be nine per cent per annum and above 15 years and upto 20 years the rate would be 9.25 per cent per annum.

Commenting on the rate reduction, chief executive officer Melwyn Rego said that the company, after complying with various legal formalities, would offer the highest quality of service to its clients at competitive interest rates. The company is also in the process of implementing an integrated web-enabled loan processing and customer service system total home loan system (THLS).

With the revised tenor-based interest rates coupled with a customer-centric approach, the company is expecting a quantum jump in business volumes.

The Industrial Development Bank of India (IDBI) has concluded the takeover process of the Tata Homefinance Ltd (THFL), a Tata Finance subsidiary, on September 8, 2003 through a 100 per cent purchase of equity holding in THFL.