HDFC Launches Dual Rate Product-2

HDFC on Thursday launched Dual Rate Product-2 (DRHL-2), a special home loan product at a fixed rate of 8.25 per cent annually up to March 31, 2011, 9 per cent for the period between April 1, 2011, and March 31, 2012, and the applicable floating rate for the balance term. “This is a flexible product with dual rates,” HDFC stated. The fixed rates are applicable for all new loans irrespective of the loan amount. The existing floating rate product continues 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 loans of Rs.50 lakh and above. Speaking on this announcement, HDFC Managing Director Renu Sud Karnad said “the response to the earlier dual rate scheme was overwhelming and with our cost of funds permitting us to offer a lower initial fixed rate, we have introduced the DRHL-2. This special offer is applicable to all new home loan customers who apply before April 30 and take at least part disbursement before June 30.'' While the fixed rate will remain the same irrespective of the loan amount, the floating rate will vary with the loan amount. Under this offer the floating rate has two slabs, that is, loans up to Rs.30 lakh where the rate will be 9 per cent and above Rs.30 lakh where the rate will be 9.25 per cent.

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