Chandigarh: A day after Finance Minister P Chidambaram pitched for lower interest rates on home loans up to Rs20 lakh, private sector housing lender HDFC said on 7 March it was not possible for now to further slash lending rates.
“If you ask if there is any possibility of reducing the interest rate then I will say no right now... because in the month of March, the market becomes tight due to corporate tax payment,” HDFC joint managing director Renu Sud Karnad told reporters here today.
When asked if she saw any scope for reduction in interest rates, Karnad said: “I cannot say on this with certainty... but it is for sure that interest rate will not go up further.”
Last month, HDFC lowered its prime lending rate by 0.25% to 13.25%.
HDFC, having 0.92% default rate, is looking at a growth of 25-30% during next fiscal on the back of boom in housing construction activity in the country.
“We will achieve 25-30% growth in the coming fiscal in terms of loans disbursement,” she said.
HDFC, which claims a 38-39% share of the housing loan market, is certain of achieving loan advances of Rs30,000 crore by this fiscal end, up 25% over last fiscal.
The lender, which is organizing a property exhibition here, is offering reduced interest rate for the duration of the fair.
Giving details, she said that interest rate of 10% would be charged on housing loans up to Rs20 lakh and 10.15% for more than Rs20 lakh loan requirement. “At present, we are charging 10.25% on housing loan.”
She said, “The expo is an attempt to provide home seekers all the services required for property purchase under one roof.”