Now, HDFC loan rates are charged at 8.25% for this fiscal year to March 2011, and at 9% for 2012. While the fixed rate will remain the same irrespective of the loan size, the floating rate will vary with the loan amount at the end of the two-year period.
The floating rate has two slabs — loans up to Rs 30 lakh where the rate will be 9% (PLR minus 4.75%) — and above Rs 30 lakh where the rate will be 9.25% (PLR minus 4.5%). The bank’s current PLR is 13.75%.
Since the HDFC scheme is on only till April 30, those who opt for the loan will be doing so without any information on the kind of interest rate they may have to pay from the third year onwards. Hence, the scheme could be ideal for home loan seekers intend to pre-pay their loans within 5-7 years. But long-term borrowers could be thrown off the track once the base rate comes into play.
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