New Delhi, Sept. 7: Largest mortgage lender HDFC on Tuesday launched its controversial teaser rates for home loans in its new avatar, a day after the country’s largest lender SBI hinted at the possibility of extending this product beyond September.
HDFC on Tuesday launched a dual rate home loan (DRHL), which is part fixed and part floating. The new DRHL-4 offer will be applicable to all new home loan customers, who apply on or before September 30 and take at least part disbursement before October 31.
“Under this offer, home loans will be available at a fixed rate of 8.5 per cent up to March 31, 2011, 9.5 per cent for a period between April 1, 2011 and March 31, 2012 and the applicable floating rate for the balance term,” it said.
The new offer comes after the discontinuation of its old scheme, DRHL-3, under which home loans were provided at 8.25 per cent for the first year, 9 per cent for the second year and at a floating rate after that.
On Monday, SBI had said it might continue its 8 per cent concessional home loan, popularly known as teaser rates, beyond September 30.
“Eight per cent rates is a viable proposition and there is no reason why it should not continue,” SBI managing director, Mr S.K. Bhattacharya, had said on Monday in Kolkata.
He had said that a decision would be taken at SBI’s next Asset Liability Committee (ALCO) meeting.