Hudco to cut home loan rates

By Our Banking Bureau | 27 Sep 2003

New Delhi: Housing and Urban Development Corporation (Hudco) is looking at ways to reduce its lending rates for housing loans.

Union Minister of State for Urban Development Bandaru Dattatraya has reviewed the company''s working and directed its board to bring down its interest rates to a more competitive level.

The board is likely to meet in the next couple of weeks to take a decision on the reduction, Dattatraya said, but refused to speculate on the quantum, saying: "The directors will take that decision."

"Commercial banks can access funds at much cheaper rates, whereas we have our own limitations in terms of historical loans at much higher rates of interest. We are aware of the sharp decline in the interest rates offered by commercial banks and we are looking at ways to reduce our rates," says Hudco senior executive director P S Rana.