Dewan Housing Finance too cuts loan rate to 8 per cent

Mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) has joined the bandwagon of lenders offering lower interest rate home-loan schemes for the lower and middle income group.

The company announced a 25-year home-loan scheme at a fixed 8 per cent interest rate annually for a period of two years for loans up to Rs5lakh, thereafter reverting to the variable interest rate. Similarly, the company has fixed an interest rate of 8.75 per cent annnually for two years for loans above Rs20 lakh.

DHFL says this will offer customers the dual advantage of lowest interest rate and an elongated period of repayment.

A number of banks and home-loan providers like State Bank of India, ICICI Bank, Dena Bank and Housing Development & Finance Corp have lowered their home-loan interest rates in recent days.

"DHFL's easy loan scheme has been designed to help reduce the interest rate burden on the borrower and the elongated period will help reduce the amount of EMI over the tenure. The scheme offers the lowest EMI of Rs772 per lakh," DHFL chairman and managing director Kapil Wadhawan told reporters in Mumbai.

"We are empowering the common man by providing the same eligible amount of loan at a lower interest rate, reducing the monthly installments by a considerable amount through an extended period of 25-years, Wadhawan said.