GIC Housing Fin lowers rates

Mumbai: GIC Housing Finance has lowered its interest rates on housing loans with effect from 9 January. The interest rates for loans up to Rs 50 lakh will be 12.25 per cent for five years and 12.5 per cent for periods between six to 15 years. The finance company also provides a free insurance cover besides computing its interest on the monthly-reducible-balance method.

The company is ranked fourth in the market-share for housing finance companies and is aiming for the No 2 slot, say company sources. It hopes to achieve this with more innovative schemes that are being formulated.

The sources say since the interest is being charged on a monthly-reducible basis, the equated monthly instalment will be less. GIC Housing Finance is also waiving fees on part-prepayment of loans and also on loans that are foreclosed. The company, which is observing January 2002 as the housing finance month, is also waiving processing fees on new proposals to mark the occasion.