HUDCO reintegrates home loans with the most competitive rates

HUDCO offers home loans at a variable rate of 10.2% for loans up to Rs25 lakh, which is slightly lower than SBI’s 10.25% interest for home loans up to Rs30 lakh

Mumbai: State-owned Housing and Urban Development Corp (HUDCO) said on Tuesday it had restarted lending for home purchases by launching a competitively priced product, PTI reports.

The company, mandated for affordable housing and urban development, will offer home loans at a variable rate of 10.2% for loans up to Rs25 lakh, its regional office in the city said in a statement.

The interest rate on the product is better than the 10.25% currently charged by the largest lender in the country, State Bank of India, also the market leader in the segment with one of the most aggressive prices, for home loans up to Rs30 lakh.

“This makes it the most competitive home loan product available to salaried employees in major capital cities of India,” the statement said.

HUDCO’s release says it will also offer other features such as free personal accident insurance, no pre-sanction fees, and no prepayment fees, which are offered by a host of players.

Home loans have been frozen since May 2011 and restarted on August 15, an official said, without giving reasons for the closure or restart.

Additionally, HUDCO will not charge any processing fees until the loan is sanctioned, unlike some commercial lenders who charge up front, the official said.

Priscilla C. Carnegie