HUDCO to cut lending rate by up to 1.25 per cent

NEW DELHI: State-run housing finance firm Housing and Urban Development Corporation (HUDCO) is likely to cut its lending rates by up to 1.25 per cent.

It has been decided to cut lending rate by up to 125 basis points, sources said.

Earlier, HUDCO had reduced its lending rate by 50 to 125 basis points with effect from January 1, 2009.

The company had reduced its rate of interest on project loan by 50 basis points and individual home loan (Hudco Niwas) between 100 and 125 basis points for loans up to Rs 20 lakh for floating rate of interest.

For home loans up to five years, the interest rate was lowered to 10.25 per cent from 11.50 per cent, a cut of 125 basis points.

For home loans with payback period beyond five years, the interest rate was cut by 100 basis points to 10.75 per cent from 11.75 per cent.