HDFC tweaks teaser rate to 8.25 per cent

With this, HDFC has effectively lowered the home loan rate to 8.25 per cent under its new dual rate scheme in the first year – what is popularly known as teaser loans, applicable on fresh loans. 

The fixed rates are applicable for all new loans irrespective of the loan amount, while existing floating rate product continues without any change where rates are applicable are 8.75 per cent for loans up to Rs 30 lakh, 9 per cent for loans between Rs 30-50 lakh and 9.25 per cent for loans of Rs 50 lakh and above.

Further, HDFC said effective rate on its new scheme was ‘very attractive’ and ‘much better than other large players in the market offering similar products’ for loan tenure of 15 or 20 years.  

Available to NRIs

HDFC Managing Director Renu Karnad said the special rates would also be available to NRIs, persons of Indian origin and self-employed customers. Further, “as a special gesture we would also allow the option to all customers whose loans are fully undisbursed as of April 14 to convert to this product without any conversion fees,” she added.

It may be noted that SBI is the only other major player currently offering teaser rate home loans.  It had extended its 8 per cent special home loan scheme till April 30 but then revised the rate for second and third years to 9 per cent from 8.5 per cent earlier.