Indiabulls Housing Finance cuts lending rates- Business News
facebooktwitter
Loading...

Indiabulls Housing Finance cuts lending rates

The private sector mortgage lender has cut home loan rates by 0.15 per cent to 10.25 per cent, following the footsteps of PSU banks who have slashed lending rates to woo customers.

  • Mumbai,  October 11, 2013  
  • |  
  • UPDATED   15:49 IST
Indiabulls Housing Finance cuts lending rates

Private sector mortgage lender Indiabulls Housing Finance has cut home loan rates by 0.15 per cent to 10.25 per cent, following the footsteps of state-run banks who have slashed lending rates to woo customers during the ongoing festive season.

"The new rate is applicable on loans under Rs 25 lakh and will remain in force till November 30," the company said in a statement.

Indiabulls Housing is the first private lender to slash rates after a majority of PSU banks, including State Bank of India (SBI), initiated similar moves on retail products over the last two days.

The Finance Ministry has advised PSU banks to cut lending rates in the retail segment to boost growth. The move has been introduced even as the Reserve Bank of India (RBI) has flagged issues on potential troubles on the asset quality front.

Market leader SBI offers the cheapest loan at 10.15 per cent.

IDBI Bank and Punjab National Bank have announced attractive home loan schemes for a limited period to attract customers.

Meanwhile, Indiabulls HF said it has received RBI nod to raise up to $200 million through external commercial borrowings (ECBs), which will bring down its cost of funds.

"The approval to raise funds through ECB provides us with another option to raise low-cost funds," the company's Managing Director and Chief Executive, Gagan Banga, said, adding overseas funds will be deployed to fund affordable housing projects.

With inputs from PTI