DHFL Vysya Housing Finance lowers lending rate by 20 bps

KOLKATA: DHFL Vysya Housing Finance Ltd announced that it will lower lending rates by 20 basis points across the spectrum for new as well as existing borrowers from April 1.

Managing director R Nambirajan said: We are the first housing finance company to announce lending rate cut this year."" At present, the company's lowest lending rate is 12.25% a year and the rate increases depending on risk weight.

""We could have reduced the rate more but could not do so as our lender banks did not cut rates even after Reserve Bank of India's decision to lower the benchmark repo rate by 75 bps this year,"" Nambirajan said.

A 100 bps means one percentage point. The Bangalore-based lender has unveiled a new loan scheme up to Rs 10 lakh for a maximum 11 year period with lower rate benefit. The MD said the new rate under this scheme will be 11.75% a year, while the lowest rate in general will be 12.05% a year.

The new product is aimed at low and middle income borrowers.

The company is an associate of Dewan Housing Finance and operates in south India.