• PAGE ONE
• INDEX
• HOME

Low rates lure NRIs to HDFC

Vimala Vasan

ABU DHABI, April 22

THE Housing Development and Finance Corporation of India (HDFC) has recorded over 20 per cent spurt in business this month compared to March. It has also received a large number of enquiries following the drop in interest rates for NRIs and the attractiv e property prices in India.

Mr. Thomas Cherian, Manager, HDFC Regional Office, told Business Line that there has been a spate of enquiries and demand for loans following the drop in interest rates for NRIs.

Last month, HDFC announced two interesting options for NRIs. The first is the fixed interest rate of 1.75 per cent for five years and 12.75 per cent for seven years. The second is the floating rate option of 11.25 per cent for five years and 12.25 per ce nt for seven years.

``The second option is based on the prime lending rate and will change according to changes in the PLR. The loan schemes have received a good response, with a lot of interest being evinced in the floating rate option,'' he said.

Mr. Cherian is of the view that with the Indian economy looking up, the interest rates are going to come down further. ``This should make the floating rate option very attractive for people taking loans,'' he said.

Following the success of the first `Prop Talk' week held in Dubai earlier this year, HDFC plans to hold the second such week in May or June. The week will feature major HDFC real estate projects in Chennai and Hyderabad.

Experts from HDFC will present details of the project and advise NRIs on various legal and other aspects of purchasing property in India, he said.

The `Builders Week' programme organised by HDFC, in which builders from Mumbai and Bangalore feature some of their major forthcoming and ongoing projects, has also elicited a good response, Mr. Cherian said.

``Most of the demand from NRIs at present is for properties in the range of Rs. 15 to 20 lakhs. With property rates placed at an attractive level now, many good projects are on offer. Occasionally, we get

businessmen and other high networth buyers looking for property in the Rs. 50 to 70-lakh range,''e said.

He expected the demand to increase over the next couple of months with most NRIs from the Gulf showing more interest in Indian real estate projects prior to their departure to Indian destinations for the summer vacation.