HUDCO is offering home loans at a floating rate of 10.2% for loans up to Rs25 lakh, which is marginally lower than SBI's 10.25% interest for home loans of up to Rs30 lakh
Mumbai: State-run Housing and Urban Development Corp (HUDCO) on Tuesday said it has restarted lending for home purchases by launching a competitively priced product, reports PTI.
The corporation, mandated with affordable housing and urban development, will be offering home loans at a floating rate of 10.2% for loans up to Rs25 lakh, its regional office in the city said in a statement.
The interest rate on the product is better than the 10.25% currently charged by the country's largest lender State Bank of India, also the market leader in the segment with one of the most aggressive pricing, for home loans of up to Rs30 lakh.
"This makes it the most competitive home loan product available for salaried individuals in the major capital cities of India," the statement said.
The HUDCO statement said it will also offer other features like free personal accident insurance, no charges before sanction, and no pre-payment charges, which are offered by a host of players.
The home loan lending was frozen since May 2011 and has been re-started on 15th August, an official said, without giving the reasons for either the closure or restarting.
Additionally, HUDCO will not charge any processing fee till the sanction of the loan, unlike some commercial lenders who charge upfront, the official said.