On the heels of the market leader State Bank of India (SBI) extending its concessional home-loan rates, the mortgage leader HDFC today announced its 8.25 per cent teaser rate home-loans till the end of August.
Under the extended scheme, HDFC will charge 8.25 per cent rate up to March 31, 2011, at 9.25 per cent for the period between April 1, 2011 and March 31, 2012 and the applicable floating rate for the remaining term of the mortgage, the country's leading mortgage lender said in a statement here.
"The fixed rates are applicable for all new home-loans irrespective of the loan amount. This special offer is applicable to all new customers who apply before August 31, 2010, and take at least a part disbursement before September 30, 2010," the lender added.
While the fixed rate will remain the same irrespective of the loan amount, the floating rate would vary with the loan amount. "Under this offer, the floating rates has two slabs --loans up to Rs 30 lakh at 9 per cent and above Rs 30 lakh at 9.25 per cent," HDFC said.
A different concessional scheme of HDFC expired on June 30, under which it had offered a fixed rate of 8.25 per cent up to March 2011, 9 per cent for the next one year and a floating rate thereafter.
The nation's largest lender State Bank of India, which is also the market leader in the home-loan sector, had on Wednesday extended its 8 per cent concessional home-loan scheme for another three months till September, which is 0.5 per centage point higher than its minimum lending or base rate. This was the fifth extension of this popular scheme by the bank since it launched the programme in August 2009.
SBI decided to extend its popular home-loan and car loan schemes and leave their terms unchanged, following the transition to the new benchmark lending rate regime from July 1.
For the first year, an SBI home-loan carries 8 per cent rate, for the second and third years it is 9 per cent and from the fourth year onwards, loans up to Rs 50 lakh is charged 9.25 per cent while those above carries 9.75 per cent rate.
Car loan is also available at 10 per cent concessional rate. The popular home loan and car loan schemes by SBI was to expire on June 30.
HDFC further said the existing floating rate products will continue without any change where the rates applicable are 8.75 per cent for loans up to Rs 30 lakh, 9 per cent for loans between Rs 30 lakh and Rs 50 lakh, and 9.25 per cent for Rs 50 lakh and above. The special interest rate is avialable to NRIs and self-employed customers too, HDFC said.
