The New Indian Express 12.05.2013
Hudco slashes lending rates
Housing and Urban Development Corporation Ltd (Hudco) effected a significant reduction in its lending rates for government and public sector borrowers for various housing and infrastructure development projects. A reduction of 25 basis points has been effected in respect of its entire housing portfolio covering economically weaker sections, low income groups, middle income groups and all other categories of housing. With this reduction, the EWS and LIG category housing projects would get loans from Hudco at 8 per cent to 8.5 per cent. The reduction also includes land acquisition for housing purposes.
The interest rates have been reduced for core infrastructure projects also covering water supply, sewerage, drainage, solid waste management, urban/city roads and social infrastructure.
The rates fore core infrastructure projects are around 10.25 per cent. Integrated township development projects also quality for reduced rates. Significantly, Hudco has so far supported taking up of over 1.5 crore housing units in the country with over 94 per cent benefiting the economically weaker section and low income groups. Hudco has also supported over 1700 urban infrastructure projects throughout the country.
The lending rates for individual borrowers was reduced to 9.95 per cent (floating) for loan up to Rs 25 lakh and 10.15 per cent (floating) for loans above Rs 25 lakh. Further, a significant reduction was also effected for lending bulk loans to government or public agencies for providing HBA to their employees at 9.95 per cent (floating) and the bulk loan for HFCs promoted by government banks, public agencies and government FIs at a revised rate of 10 per cent (floating) The interest rates reduction makes Hudco one of the organisations charging lowest and most competitive lender in retail housing market. This would enable Hudco, which is already financing one in every 15 houses in the country, to enhance its outreach further.
