• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Mumbai, Sept. 24 This may be the right time to buy a house with interest rates finally showing some signs of cooling. Housing Development and Finance Corporation Ltd has announced a special interest of 10.5 per cent for home loan borrowers opting for a floating rate of interest. This festival offer will be applicable only on those loans which are disbursed on or before October 31, 2007.

The revised rate will hence not apply on home loans where the approval is in place, but the disbursement has not taken place because the housing project is incomplete.

Among the other housing finance companies, LIC Housing Finance has also been offering a special rate of 10.5-10.75 per cent since Onam.

Ms Renu Sud Karnad, Executive Director, HDFC, said, “Our lending rates are a function of our cost of funds and we have seen a reduction in our cost of funds.”.

HDFC had been offering a special interest rate of 11 per cent (from 11.25 per cent) as part of the ‘Monsoon offer’ since June. HDFC’s fixed rate is currently at 13.25 per cent.

Ms Karnad said that currently 90 per cent of HDFC’s home loan borrowers are on floating rate home loans.

ICICI Bank is offering a floating interest of 12 per cent and a fixed rate of 14 per cent. The bank’s spokesperson said that ICICI was not considering offering special rates for now.

More Stories on : Housing Finance | Interest Rates | Housing Development Finance Corporation Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Building ‘low’ may target Konkan, Gujarat

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line