The Hindu : Hudco cuts rates

Online edition of India's National Newspaper
Tuesday, Nov 18, 2003

Business

Business

Hudco cuts rates

By Our Special Correspondent

NEW DELHI NOV.17. Keeping in line with the downward trend in the interest rate regime in the housing finance sector, the public sector Housing and Urban Development Corporation (Hudco) today announced an across the board reduction in the interest rates for its retail housing lending scheme, Hudco Niwas, by 1.25 per cent.

The loans under the floating rate category would be now available at 8.25 per cent for a maximum period of 25 years, and those under the fixed rate category at 8.25 per cent for five years and 8.5 per cent for up to 15 years.

The board of directors of Hudco, which met here today, also decided to bring down the floating interest rates for housing schemes for the weaker sections and for the `action plan schemes' of the Central Government to 8 per cent from 9.25 per cent and fixed rate for these schemes to 8.5 per cent from 10 per cent.

Likewise, on loans for all other types of projects from the public and the private sector, the over all base rate for floating interest rates has been brought down 9.5 per cent to 8.5 per cent and for the fixed rate category, the reduction ranged from 100 to 150 basis points.

Announcing the decisions on behalf of HUDCO, the Union Urban Development Minister, Bandaru Dattareya, said the reduction in the interest rates was expected to bring in more buoyancy in the housing and urban infrastrucure market.

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