Hudco reduces rates on fixed, floating loans

By Our Economy Bureau | 12 Sep 2002

New Delhi: Hudcos individual housing loan division, Hudco Niwas, has followed several other players in the segment in reducing the interest on loans, for both fixed and floating.

Hudco chairman and managing director Pankaj Jain says the interest rates have been reduced in the range of 50 basis points to 100 basis points across all loan slabs. The fixed rate loans will be available at an interest rate of 10.25 per cent for a repayment period of up to five years, 10.50 per cent for a repayment period of more than five years and 11 per cent for a repayment period between 10 and 15 years.

Similarly, the floating rate loans will be available at a rate of 10 per cent for a repayment period up to five years and 10.50 per cent for a repayment period up to 20 years. Jain says the armed forces, police, paramilitary, central and state government employees and journalists will continue to benefit due to the lower interest rate of 0.80 per cent, compared to other segments.

Apart from reducing interest rates, Hudco has also announced a couple of new loan products such as offering loans to professionals for non-residential premises and loans against residential properties.

According to Jain, Hudco will provide loans to professionals such as doctors and chartered accountants for purchase, construction or extension of non-residential premises.