Indiabulls Financial launches special home loan scheme

Under the home loan scheme, the salaried borrower would have to pay interest at the rate of 8.5 per cent up to March 31, 2011, followed by 9.5 per cent till 2012, Indiabulls Financial Services said in a statement. From the third year onwards it would be 9.5 per cent floating, it said.

The announcement comes a day after the largest mortgage lender HDFC launched a dual rate home loan (DRHL), which is part fixed and part floating. The new DRHL-4 offer is applicable to all new home loan customers, who apply on or before September 30 and take at least part disbursement before October 31.

"Introduction of this new home loan scheme at 8.5 per cent is a move to augur the aggressive growth plans, with an annual target of Rs 6,000 crore worth new home loans disbursement," Indiabulls Financial Services CEO Gagan Banga said.

The offer is available across 140 cities and towns across India. "We plan to grow our home loans business by 40 to 45 per cent this fiscal and increase our market share from the current 4 per cent to 10-15 per cent by 2014," Banga said.

He said the company is looking to add 25-30 cities every year to its distribution network and increase the sales force by 25-30 per cent from the current strength of 1,500."