Artificial rates may lead to crisis: HDFC

Hitting out at rivals offering home loans at low interest during early years of the credit period, HDFC on Friday warned that artificial rates could lead to a crisis like the US housing collapse.

“We are seeing some variations of teaser-type housing loans being offered. The lure of low interest rate at the start of taking a housing loan is enticing. But are the customers being made aware of future implications?” HDFC chairman Deepak Parekh asked in a letter to shareholders.