DHFL cuts interest rates on home loans; fixed deposit rates slashed

Mumbai: Dewan Housing Finance Corporation (DHFL), the second largest housing finance company in the Indian private sector, has slashed its interest rates on housing loans by 150 basis points to 9.25 per cent under the popular variable monthly scheme. The new rates will be applicable with immediate effect.

Says DHFL managing director Kapil Wadhawan: “Our aim is to give additional advantage to the customer in this competitive atmosphere. As a customer-friendly housing loan company, we always strive to be on his side.“

DHFL had brought down the interest rate by 25 basis points in November 2002. For variable plan, the new structure works out to 9.25 per cent for five years, 9.75 per cent for 10 years and 10.25 per cent for 20 years. Even under the annually fixed scheme, the rates have been slashed by 50 basis points to 10 per cent across the board.

The detailed table:
For purchase / construction / women loan / extension loan
Tenure Interest rate
  Fixed VRHL
  Monthly Annual Monthly Annual
1 to 5 years 9.50% 9.25% 9.25% 10.00%
6 to 10 years 10.00% 9.75% 9.75% 10.00%
11 to 20 years 10.50% 10.25% 10.25% 10.00%

DHFL, which has a vast network of 42 branches and 150 camp locations, has registered nearly 100-per cent growth in its sanctions and disbursals at the end of third quarter of the current fiscal and its non-performing assets work out to a negligible .04 per cent.

“We have built a strong foundation and are looking for healthy growth as the housing sector gets a boost as a result of the recent budgetary proposals,“ says Wadhawan. DHFL is also contemplating a reduction of interest rates payable on its fixed deposits with effect from 15 March 2003.