With the new product, a customer can avail a home loan at an interest rate that remains fixed for a duration of 2 years to 10 years and thereafter the loan switches automatically to HDFC's adjustable rate home loan (ARHL)
Mortgage lender HDFC launched a fixed interest rate home loan product for a limited period as part of New Year celebrations to attract customers.
Besides, the housing finance company also slashed its deposit rates by up to 15 basis points across various products and options.
Under TRUFIXED product, the customer can avail a home loan at a fixed interest rate for the duration of 2 years to 10 years and thereafter, the loan will switch automatically to HDFC's adjustable rate home loan (ARHL) product without any charges, the company said in a statement.
Earlier this month, Axis Bank had launched a 20-year home loan scheme at a fixed rate of 10.40% for loans of up to Rs50 lakh.
As per HDFC, the options are in addition to all existing home loan products being offered by the housing finance company.
These options are for customers seeking to lock in their home loan interest rates and not take risk on interest rates for a period of as long as 10 years, it said.
The interest rates for 2 and 3 years option range between 10.15% and 10.35% and for 10 years between 10.25% and 10.50% per annum.
This offer shall be applicable to all customers who apply between 22 December 2014 and 31 January 2015 and avail of the first disbursement on or before 31 March 2015.
After the completion of the fixed rate period, the loan will switch to floating rate, linked to benchmark rate.
The floating rates on the switch to ARHL based on current benchmark for loans up to Rs75 lakh is 10.15% and for loans above Rs75 lakh is 10.50%.
Non-residents and People of Indian Origin (PIOs) can also avail of this option.