Following industry biggies HDFC and Indiabulls Housing Finance cutting their home loan rates by 45 basis points, Dewan Housing Finance Corporation (DHFL) has raced to cut its rate by 50 basis points to 8.60 per cent from 9.10 per cent, effective January 4.
Post-reduction (of 45 basis points) in its lending rate, HDFC is now charging women borrowers 8.65-9.15 per cent interest for loans up to ₹75 lakh and for other borrowers 8.70-9.20 per cent, with effect from January 3.
HDFC, India’s largest standalone housing finance company, also introduced a limited period offer for customers who apply for loans on or before February 28, and avail of their first disbursement on or before March 31 under the ‘TruFixed’ home loan.
Under this scheme, the interest rate during the two- and three-year fixed rate term for women (up to ₹75 lakh loan) is 9.15-9.65 per cent and for others it is 9.20-9.70 per cent. Post-fixed rate term, the applicable interest rate will be the prevailing rate of interest under the adjustable rate.
Renu Sud Karnad, Managing Director, HDFC, said over the past couple of months the company has seen a drop in its marginal cost of funds. Hence, through the rate cut, it is ensuring that the benefit is passed on to its customers.
Indiabulls Housing Finance also cut its home loan rate by 45 basis points to 8.65 per cent for women borrowers and 8.70 per cent for other borrowers.
Gagan Banga, Vice Chairman and Managing Director, said, “...home loan rates are now at their lowest in six years and tremendously improves buyers’ affordability. The cut in rates, the recently announced enhancement in Prime Minister’s Awas Yojana subsidies, and tax deductions against home loan repayments, make the EMI cheque smaller than the rent cheque for buyers of affordable houses for the first time in more than a decade.”