India home loan rates heading downwards

In an earlier post, we mentioned that HDFC was looking to lower home loan rates. They have since announced their revised home loan rates:

1. 'Special' rate of interest of 10.5% for customers availing of floating rate home loans. This is 0.75% lower than HDFC's regular rates

2. This offer is available for all loans disbursed on or before 31 Oct 2007

3. However, interest rate for fixed rate loans is 13.25%.

The wide difference between fixed and floating rates is said to be in place to act as a disincentive for consumers going for fixed rate loans.

Interestingly, Mr. Deepak Parekh, Chairman HDFC mentions in a TV interview that the Finance Minister thought HDFC should go deeper with the interest rate cuts !

Therefore, please continue to watch this space.