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Reduction in Rate of Interest of Individual Housing Loans under HUDCO Niwas at 9.75%

Sep 25th, 2015 10:01 am | By | Category: LATEST NEWS


Housing & Urban Development Corporation Ltd. (HUDCO), a Govt. of India Enterprise of which Dr.M Ravikant is CMD,HUDCO has substantially reduced the rate of interest for its Individual Housing Loan Scheme-HUDCO Niwas to 9.75% (floating) for loans upto `50.00 Lakh and to 9.80% (floating) for loans between `50-100 Lakh which is the lowest Rate of Interest among all Banks/HFIs. With the above reduction borrower will be able to save around `1.70 Lakh per `20.00 Lakh loan over a period of 25 years. Additionally, HUDCO is not charging any processing fee and also providing free accidental insurance to its housing loan borrowers.

Further, the interest rate for bulk loan to Housing Finance Companies (HFCs), of Govt. Banks/Public Agencies/Govt. Financial Institutions have also been reduced to 9.80% (floating) p.a.

HUDCO has also been identified as one of the Central Nodal Agency (CNA) to channelize the Credit Linked Subsidy to Banks/HFIs etc. for Govt. of India’s ambitious and prestigious programme “Pradhan Mantri Awas Yojana (PMAY)”, a Mission to provide “Housing for All by 2022” in the country. The Mission will be implemented through four verticals, which inter alia includes Affordable Housing through Credit Linked Subsidy Scheme (CLSS). Under which, interest subsidy of 6.5% is available on the housing loans, which may be availed by the beneficiaries having an annual income upto `6.00 Lakh. This subsidy would be provided on the loan component to the maximum extent of `6.00 lakhs. Accordingly, the borrower will get a subsidy of Rs.2.20 Lakh for loan tenure of 15 years, which will be adjusted against their outstanding loan. The programme is aimed to provide shelter to the masses, specifically to the Weaker / Vulnerable sections of the society.

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