BWI: HDFC Ltd Launches "Dual Rate Product - 2"

Press release from Business Wire India
Source: Housing Development Finance Corporation Limited
Thursday, April 15, 2010 05:15 PM IST (11:45 AM GMT)
Editors: General: Consumer interest, Economy; Business: Accounting & management consultancy services, Banking & financial services, Business services, Financial Analyst, Stock exchanges
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HDFC Ltd Launches "Dual Rate Product - 2"


Mumbai, Maharashtra, India, Thursday, April 15, 2010 -- (Business Wire India) -- Highlights:

-- 8.25% Fixed Rate up to 31.3.11 , 9% for period between 1.4.11 and 31.3.12 and Floating Rate for the Balance term.

-- Same Fixed Rate irrespective of the Loan amount.

HDFC Ltd., India's premier housing finance company, has launched a special home loan product at a fixed rate of 8.25% p.a. up to 31.3.2011 , 9% for the period between 1.4.2011 and 31.3.2012 and the applicable floating rate for the balance term. This is a flexible product with dual rates. 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% for Loans up to Rs 30 lacs, 9% for loans between Rs 30 lacs and Rs 50 Lacs and 9.25% for loans of Rs 50 lacs and above .

Speaking on this announcement, Ms. Renu Sud Karnad, Managing Director, HDFC Ltd. said that 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 30.4.2010 and take at least part disbursement before 30.6.2010. These customers will get a fixed rate of 8.25% up to 31.3.2011 , 9% for the period between 1.4.2011 and 31.3.2012 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. Under this offer the floating rates has two slabs ie; Loans up to Rs 30 lacs where the rate will be 9 % and above Rs 30 lacs where the rate will be 9.25%. Even though there is a marginal increase as compared to the earlier offer , our effective rate over a 15 /20 year term is very attractive and is much better than other large players in the market offering similar products.

As a special gesture we would also allow the option to all customers whose loans are fully undisbursed as of 14th April to convert to this product without any conversion fees.

The special interest rate under DRHL-2 is available to the NRI and PIO customer segments too. The self employed customers can also apply under the DRHL-2 and avail the same special interest rate offer.

Housing Finance is a specialized product where each loan is customized to suit individual requirements. Interest Rate is just one aspect in the entire value chain. People who want loans want to know whether they can trust the developer, they want value-added information. 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.


Approvals And Disbursements

Loan approvals during the nine-month period ending 31st December, 2009 amounted to Rs.44,110 crore as compared to Rs. 33,820 crore, in the corresponding period last year, representing a growth of 22%. Loan disbursements during the nine-month period ending 31st December, 2009 amounted to Rs. 33,527 crore as compared to Rs. 27,211 crore in the corresponding period last year, representing a growth of 23%.

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

Deposits :

As at 31st December, 2009, deposits stood at Rs. 21,979 crore as against Rs. 17,551 crore on the corresponding date last year. During the nine months of the financial year, deposits accounted for 49% 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) 22820282, maheshs@hdfcindia.com
Supriya Sonde, Housing Development Finance Corporation Limited, supriyas@hdfc.com

KEYWORDS
CONSUMER, ECONOMY, CONSULTANCY SERVICES, BANKING, BUSINESS SERVICES, Financial Analyst, STOCK EXCHANGES, 500010.BO, HDFC.NS

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