HUDCO cuts loan rates by up to 1.25%

Housing and Urban Development Corporation (HUDCO) has cut lending rates by up to 1.25 per cent for government funded and private sector housing projects for economically weaker sections. The new lending rates will be effective from June 23, a government release said.

Under the economically weaker section housing special category for widows, scheduled castes and scheduled tribes, HUDCO has reduced lending rates by 1 per cent to 8.50 per cent. It has also cut loan rates for other EWS housing projects by 1 per cent to 8.75 per cent.

According to the Memorandum of Understanding between HUDCO and Ministry of Housing & Urban Poverty Alleviation for 2009-10 financial year, 84 per cent of the total dwelling units sanctioned should cover EWS and low income group units.

The state-owned mini ratna has reduced lending rates by up to 1.25 per cent for loans to private sector and state housing boards, development authorities and state level financing corporations. “In case of state housing board, the lending rates have been reduced by 1.25 over cent to 9.75 per cent,” a HUDCO official said.