The competition in the low-rate housing loan segment got a bit more stiff. Dewan Housing Finance Ltd (DHFL), one of the private mortgage finance players, launched home loans at a rate of 8% per annum and also decided to extend the loan repayment period to up to 25 years.
Currently, most housing loan players in India offer loans of up to 20 years. Beginning with banking major State Bank of India (SBI), in the last few months a number of mortgage players have launched home loans with rates below 9% for the initial years.
DHFL’s offer, christened DHFL Easy Easy Loan’ scheme, is for new customers only.
Under this scheme, which is launched as part of DHFL’s silver jubilee celebrations, loans are offered at a fixed rate of 8% for the first 2 years for loans up to Rs 5 lakh. Loans between Rs 5 lakh and Rs 20 lakh are offered at 8.25%. At the end of the second year, the rates will revert to a variable mode.