Festival special home loan schemes still continue

By Accommodation Times Bureau

In the festival season housing finance companies have started the home loan schemes, but still haven’t withdrawn with those schemes such as fixed-cum-floating rate home loan due to upsurge in demand.
In the previous year’s September month the Housing Development Finance Corporation (HDFC) has introduced dual-rate product Fixed First and also has mentioned the deadline till 31st Oct but later on date extended to 31st March 2012. For loans up to `30 lakh, HDFC has fixed the interest rate at 10.75% for three years and 11.25% for five; for loans between `30 lakh and `75 lakh, the rate is 11.25% for three years and 11.5% for five; and for loans above `75 lakh, the rate is 11.75%.
Recently money lender Company’s higher authority came out with the announcement that the future of the product would be taken based on the Reserve Bank of India’s decision on lending rates. Following to foot steps of HDFC the nation’s second largest money lender ICICI Bank also not yet discontinued the special fixed rate product launched in the previous year’s August month. According to the scheme customers will get an option to lock in with a fixed rate for the first one or two years of the loan duration and then move to a floating rate. According to the authentic sources the product will remain in the market for more upcoming months. For loans up to `25 lakh, ICICI charges a fixed rate of 10.5% under the one-year option and 10.75% under the two-year option; for loans up to `25-75 lakh the rate is 11% for one year and 11.25% for two years; loans amounting to `75 lakh and above are charged at 11.5% in both cases.

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