Banking | HDFC introduces new teaser rate loan

Banking | HDFC introduces new teaser rate loan

Mumbai: India’s largest mortgage lender Housing Development and Finance Corp. Ltd (HDFC) on Thursday launched a home loan product with fixed teaser rates for the first two years and a floating rate that would kick in in the third year.

“This special offer is applicable to all new home loan customers who apply before 30 April 2010 and take at least part disbursement before 30 June 2010. These customers will get a fixed rate of 8.25% up to 31 March 2011, 9% for the period between 1 April 2011 and 31 March 2012 and for the balance period the floating rate will apply,’’ the firm said in a statement. The fixed rate for the second year will be in two slabs: loans up to Rs30 lakh will be charged 9% and loans above that will attract 9.25%.

— Anita Bhoir


NPAs to peak at 3.5-4% by March 2011: Crisil

Mumbai: Domestic rating agency Crisil Ltd on Thursday said it expects non-performing assets (NPAs), or bad debts, in the Indian banking system to peak at 3.5-4% by March 2011, compared with 2.8% now. Crisil had earlier estimated NPAs to reach 5%.

At a Mumbai conference on Thursday, Crisil said it expects the financial sector to remain robust in the coming years and India’s gross domestic product to grow at 8% annually over the next three years. Credit growth will be 20-22%, fed by demand from the infrastructure sector, Crisil’s managing director Roopa Kudva said.

— Anup Roy