HDFC Extends Special Home Loans Deadline
Bangalore: Special home loans widens up as Keki Mistry, Chief Executive Officer, Housing Development Finance Corporation (HDFC) extends the last date of application for its special home loan scheme till January 31, reports DNA.
In spite of all the discounts and festive season, the home loans show a decline, so the extension has been demanded by various lenders in order to mark an improvement in the situation.
This is the third time HDFC has given an extension on the application deadline for fixed as well as floating products. The launch of a loan product in September had an initial deadline of October 31. For HDFC's loan scheme, up to 30 lakh, the interest rate is 10.75 percent for three years, 11.25 percent for five. For loans ranging from 
30 lakh to 75 lakh, the interest rate is fixed at 11.25 percent for three years and 11.5 percent for five years and for loans above 75 lakh, the rate is 11.75 percent.
A source said, the expenditure for these loans will be completed by the end of February, following the present extension. It's not only HDFC alone extending the discount schemes. The largest national bank, State Bank of India has already extended the 25 bps discount that it offered on home loans till March 31, from previous deadline of December 31.
With discounts schemes coming into practice, the lenders are acquiring respectability in home loan disbursements in the current picture. Suresh Ganpathy, Head of Financial Research Team, Macquarie Securities, said, "Companies would not look at dismantling such products right away. It gives them some hope even in the high interest rate regime and also gives customers a kind of discount."
Renu Sud Karnad, Managing Director, HDFC, "We don't think this is the right time to do away with this product. It has generated good demand from the customers and our further moves will depend on what the Reserve Bank of India does with its monetary policy."
A senior official of the bank said that SBI's home loan portfolio registered a shortfall of 1,000 crore in the first half of the fiscal regardless of disbursals close to Rs7,000 crore. The home loan portfolios of different lenders have taken a stern defeat in the current financial year under the impact of high real estate prices and high loan rates.
30 lakh to 75 lakh, the interest rate is fixed at 11.25 percent for three years and 11.5 percent for five years and for loans above 75 lakh, the rate is 11.75 percent.
A source said, the expenditure for these loans will be completed by the end of February, following the present extension. It's not only HDFC alone extending the discount schemes. The largest national bank, State Bank of India has already extended the 25 bps discount that it offered on home loans till March 31, from previous deadline of December 31.
With discounts schemes coming into practice, the lenders are acquiring respectability in home loan disbursements in the current picture. Suresh Ganpathy, Head of Financial Research Team, Macquarie Securities, said, "Companies would not look at dismantling such products right away. It gives them some hope even in the high interest rate regime and also gives customers a kind of discount."
Renu Sud Karnad, Managing Director, HDFC, "We don't think this is the right time to do away with this product. It has generated good demand from the customers and our further moves will depend on what the Reserve Bank of India does with its monetary policy."
A senior official of the bank said that SBI's home loan portfolio registered a shortfall of 1,000 crore in the first half of the fiscal regardless of disbursals close to Rs7,000 crore. The home loan portfolios of different lenders have taken a stern defeat in the current financial year under the impact of high real estate prices and high loan rates.