DHFL Vysya cuts rate by up to 0.5%

DHFL has decided to reduce the interest rate in 0.2-0.5% range on housing loans from April 1 while aiming for 50% growth during 2013-14.

DHFL Vysya Housing Finance, an associate company of Dewan Housing (DHFL), has decided to reduce the interest rate in a 0.2-0.5 per cent range on housing loans from April 1, while aiming for 50 per cent growth during 2013-14.

"We are the first among the HFCs to reduce rate of housing loan by 20 basis points for both existing and new customers under variable interest scheme. But, for the priority sector housing scheme for loan upto Rs 10 lakh there is an additional rebate of 30 basis points," DHFL Vysya Housing managing director R Nambirajan said.

One basis point is equal to 0.01 per cent. So, the total benefit will be of 0.5 per cent for the new scheme for housing loans of up to Rs 10 lakh for a period of up to 11 years targeting the priority sector.

Nambirajan said the announcement in the Budget for additional rebate of Rs 1,00,000 allowed in the interest on housing loans, in addition to Rs 1,50,000 already allowed from April 1, 2013 will induce boost demand from more the middle income groups in 2013-14.

"We hope to grow by over 50 per cent in 2013-14 against 30 per cent in the current fiscal," he said. Our disbursements in this fiscal will stand Rs 345 crore while, the same will jump to Rs 520 crore in the next year, Nambirajan said.