HDFC cuts home loan rate for the first 2 years
The housing finance major on Thursday lowered its home loan rate to 8.25 per cent for the first year.
New Delhi: Housing finance major HDFC on Thursday lowered its home loan rate to 8.25 per cent for the first year in its new dual rate scheme, commonly known as teaser loans, applicable on fresh loans.
Under the scheme, the country's biggest mortgage provider would offer a fixed rate of 8.25 per cent up to March 2011, then nine per cent for the next one year and the prevailing floating rate for the remainder of the loan tenure.
"This is a flexible product with dual rates. The fixed rates are applicable for all new loans irrespective of the loan amount," HDFC said in a statement.
The teaser rates have been a major issue in the home loan market in the recent past, with public sector lender SBI walking away with a big pie of the market through its own teaser rates.