The country's top housing finance provider HDFC Friday (16^th January) announced a lower interest rate of 9.75 per cent for new loans up to Rs 30 lakh, bringing the rates to lowest level in about three years.

 

Under the limited period offer applicable to new floating rate customers, the lender would charge 9.75 per cent for loans up to Rs 30 lakh and 10.75 per cent for bigger loans.

 

Prior to the special period offer announced on Friday HDFC was charging 10.25 per cent for loans up to Rs 20 lakh and 11.25 per cent for bigger loans.

 

HDFC joint managing director Renu Sud Karnad told PTI that, the new housing loan rates were followed by a reduction in HDFC’s deposit rates by 0.50-0.75 per cent effective from 15 January.

 

She added that as the cost of borrowing has come down for HDFC, it decided to pass on the benefit to its borrowers. She hoped that, the lower rates should encourage more home buyers to come to the market and then the property developers to lower their prices.

 

The market has already seen builders in select areas slashing their prices by 10-20 per cent, which coupled with lower interest rates should encourage more middle-income buyers to come to the market, Karnad predicted.