HUDCO reduces interest rates
Keeping with the ongoing market trends, Housing & Urban Development Corporation Ltd (HUDCO) has reduced its lending rates up to 1.25% both for the Government and the Private Sector. The new interest rates will be effective from June 23, 2009.
This is in line with the Ministry‘s vision on the “Shelter for the Poor”. Kumari Selja, Minister of Housing & Urban Poverty Alleviation and Tourism has recently emphasised for more focused approach on Social Housing as well as affordable housing and also expects HUDCO to release funds to this category at the most competitive rates.
The reduction in lending rates from 9.50% to 8.50% (floating) for EWS Housing (Special Category-for Widows, SCs/STs) and 9.75% to 8.75% for EWS Housing is being subsidized by HUDCO to benefit the poor borrowers.
As per the MoU executed between HUDCO and the Ministry for the year 2009-10, 84% of the total dwelling units sanctioned should cover EWS and LIG units. Out of the total loan sanctioned for housing sector, HUDCO has been able to fund over 95% of the houses for the EWS and LIG categories.
In respect of the other commercial projects of public sector borrowers, police organizations, State Government borrowings, Real Estate Projects and Power Projects and also for private sector projects, the reduction in rates of interest goes up to 1.25%.