BWI: HDFC Introduces a Dual Rate Product as Part of its Festive Offer

Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Tuesday, December 01, 2009 08:14 PM IST (02:44 PM GMT)
Editors: General: Consumer interest, Economy; Business: Advertising, PR & marketing, Banking & financial services, Business services, Construction, Financial Analyst, Real estate, Stock exchanges
--------------------------------------------------
HDFC Introduces a Dual Rate Product as Part of its Festive Offer
Also Launches " Move in Loans" for Ready Properties

Mumbai, Maharashtra, India, Tuesday, December 01, 2009 -- (Business Wire India) -- Highlights:

-- 8.25% Fixed Rate up to 31.3.2012 and Floating Rate for the Balance term.
-- Same Fixed Rate irrespective of the Loan amount.

HDFC Ltd., India's premier housing finance company, as part of its regular festive offer, has launched a special home loan product at a fixed rate of 8.25% p.a. up to 31.3.2012 and the applicable floating rate for the balance term. This is a flexible product with dual rates. The rate of 8.25% p.a. is applicable up to March 31, 2012, for all new loans irrespective of the loan amount.

Speaking on this announcement, Ms. Renu Sud Karnad, Joint Managing Director, HDFC Ltd. said, "There is ample liquidity in the system. The Banking system continues to park around Rs 1 trillion with RBI through reverse repo. We have been able to bring down our costs due to improved operational efficiency and good quality portfolio. Based on current Marginal cost of borrowing a special festive offer is being made to new customers to reduce the cost for the home buyer".

This special festive offer rate is applicable to all new home loan customers who apply before 31.1.2010 and take at least part disbursement before 31.3.2010. These customers will get a fixed rate of 8.25% up to 31.03.2012 and for the balance period the floating rate will apply. While the fixed rate will remain the same irrespective of the Loan amount the Floating Rate will vary with the loan Amount. At the moment HDFC has three slabs ie; Loans up to Rs 30 lacs, > Rs 30 lacs and < Rs 50 Lacs , Rs 50 lacs and above .

Similarly the same product will be available to NRI's and PIO's.

HDFC has also launched "Move in Home loans" to assist customers to get loans quickly to buy a " Ready to move in new property or a Resale property". In recent months, we have seen an increase in inquiry levels from prospective customers wanting to move into flats. Also the resale market is huge and documentation with regard to resale properties requires special attention, that too on a priority basis as the customers buying the property can take advantage by paying up quickly.


Housing Finance is a specialized product where each loan is customized. Interest Rate is just one aspect in the entire value chain and a smart customer is aware of that as he needs special attention for he is making the largest investment of his life. People who want loans want to know whether they can trust the developer, they want value-added information. We have established robust systems. Our experience of being in this field for over 3 decades have made it easy for us to understand the customer needs better. We guide / handhold the customer right through the process of buying his dream home. Be it advising him on the property, documentation, Quality of the developer, etc. These services provided by us are unmatched. Having said that the housing shortage in the country is huge and hence there is scope for everyone to grow whether they are experts or otherwise.


The Indian Real Estate Market

The prices of properties in the past couple of months have run up slightly across the country and more sharply in some parts of Mumbai and Delhi. However this is a still good time to buy property. The cost of acquiring a property came down significantly from its peak levels of 2008 due to a combination of factors such as drop in property prices, lower specifications and reduction in average size of the units. This was one of the major factors, which has led the Indian real estate industry to bounce back. Further, interest rates have also softened which is bringing in a lot of prospective home buyers who were waiting to buy a home but had deferred their decision. Over the past couple of months, developers have seen an increase in sales inquiries.

Approvals And Disbursements

Loan approvals during the six-month period ending September 30, 2009 amounted to Rs. 28,418 crore as compared to Rs. 24,180 crore, in the corresponding period last year, representing a growth of 18%. Loan disbursements during the six-month period ending September 30, 2009 amounted to Rs. 22,342 crore as compared to Rs. 17,788 crore in the corresponding period last year, representing a growth of 26%.

On a sequential quarter basis, the growth in individual loan approvals and disbursements for the second quarter of this financial year has been 26% and 24% respectively as compared to the first quarter ending June 30, 2009.

HDFC's recovery performance continues to be very good. This is the nineteenth consecutive quarter end at which the non-performing loans have been lower than the corresponding quarter end in the previous year

Deposits :

As at September 30, 2009, deposits stood at Rs. 20,530 crore as against Rs. 14,723 crore on the corresponding date last year. During the first half of the financial year, deposits accounted for 44% of the incremental borrowing of the Corporation. HDFC's deposits carry a "AAA" rating from both, CRISIL and ICRA.


CONTACT DETAILS
Mahesh Shah, Housing Development Finance Corporation Limited, +91 (22) 66316410, maheshs@hdfc.com
Supriya Sonde, Housing Development Finance Corporation Limited, +91 (22) 66316461, supriyas@hdfc.com

KEYWORDS
CONSUMER, ECONOMY, MARKETING, BANKING, BUSINESS SERVICES, CONSTRUCTION, Financial Analyst, REAL ESTATE, STOCK EXCHANGES, 500010.BO, HDFC.NS

If you wish to change your Business Wire India selection please click on this link http://www.businesswireindia.com/media/news.asp and use your personal username and password to login.

Submit your press release at http://www.businesswireindia.com