BackHDFC launches its fixed rate home loan product
Borrowers can avail of a home loan at a fixed interest rate for a duration of two years to 10 years after which the loan will switch to ARHL without any charge
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Mumbai: Housing Development Finance Corp. Ltd (HDFC), India’s oldest mortgage lender, on Monday relaunched its fixed rate home loan product as part of a festive offer.
HDFC said borrowers can avail of a home loan at a fixed interest rate for a duration of two years to 10 years after which the loan will switch automatically to HDFC’s adjustable rate home loan (ARHL) product without any charges. Customers can also choose to move to a floating rate before the end of the fixed period; however, such a move will attract charges, HDFC said.
The interest rates for two and three year loans will be in a range between 10.15% and 10.35% and for 10 years it will be between 10.25% and 10.50% for individuals, HDFC said in a statement on Monday.
The interest rates for two and three-year loans range between 10.15% and 10.35% and for 10 years between 10.25% to 10.50% for individuals.
The rate of interest applicable during the ARHL period of the loan shall depend on the retail prime lending rate (RPLR) at the time of the switch of the loan to ARHL. The floating rates on the switch to ARHL, based on current RPLR of 16.75%, for loans up to ₹ 75 lakh, is 10.15% a year and for loans above ₹ 75 lakh is 10.5%.
This offer shall be applicable to all customers who apply between 22 December and 31 January and avail of the first disbursement on or before 31 March 2015, HDFC said in its statement.
Earlier this month, private sector lender Axis Bank Ltd said it had launched its own fixed rate product, allowing customers to lock in a loan for 20 years at 10.4% interest.
HDFC has also re-aligned its deposit rates by reducing them by up to 15 basis points across various products and options, it said. One basis point is one-hundredth of a percentage point.
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