Cut in interest rates

By Our Special Correspondent

MUMBAI, OCT. 17. Housing Development Finance Corporation (HDFC) and ICICI Home Finance Company today announced a cut in their lending rates with effect from today.

HDFC has also reduced interest rates on its other individual lending products such as NRI housing loans, home extension, home improvement, home equity, short-term bridge loans and non- residential premises loans to professionals.

HDFC's retail prime lending rate has been reduced by 50 basis points to 12 per cent from 12.5 per cent per annum.

The interest rates on fixed rate home loans are: up to Rs. 2 lakhs 10.50 per cent (up to five years), 11.25 per cent (6 to 10 years) and 11.50 per cent (11 to 15 years). The rate of interest for loans above Rs. 2 lakhs is 10.50 per cent (up to five years), 12 per cent (6 to 10 years), and 12.25 per cent (11 to 15 years).

The corporation stated that the revised interest rates will apply for new loans and loans which are approved but not yet disbursed. Further, to mark its 25th year of operations, it has announced a special discount of one per cent on processing and administration fees for housing loans. Customers who apply for housing loans from October 17 to November 16 will be required to pay a processing and administration fee of only 0.8 per cent as against a normal fee of 1.8 per cent.

ICICI Home Finance Company for its part has announced a 25 basis point reduction in interest rate on its key products with effect from today.

The new interest rates are: 10.50 per cent for 1 to 5 years; 12 per cent for 6 to 10 years; 12.25 per cent for 11 to 20 years and 12.50 per cent for 21 to 30 years.

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Section  : Business
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