Dewan Housing cuts interest rates

MUMBAI, MARCH 31: Dewan Housing Finance Corporation, the leading housing finance firm in the private sector, has reduced interest rates o...

MUMBAI, MARCH 31: Dewan Housing Finance Corporation, the leading housing finance firm in the private sector, has reduced interest rates on its housing loans as well as the deposit products by one percentage point. The reduction in interest rates follows the slashing of interest rates on housing finance by Housing Development Finance Corporation, State Bank of India, Corporation Bank and LIC Housing Finance.

The interest rate on loans up to Rs 25,000 will, however, remain unchanged at 12 per cent. For loans ranging between Rs 25,001 and Rs 2,00,000, the rate has been reduced to 13.50 per cent from 14.50 per cent while those between Rs 2,00,001 and Rs 5,00,000 will now attract an interest rate of 14 per cent, down from 15 per cent. Loans between Rs 5,00,001 and Rs 10,00,000 will carry a rate of 15 per cent, down from 16 per cent.

The interest rates on the golden jubilee rural housing scheme 8212; the most popular scheme from the group 8212; and the home improvement schemes have also been reduced by 50 basispoints. With this reductions, Dewan Housing aims at a 35 per cent increase in its disbursals in the fiscal year 2000 and enhance its market share.

The group is also planning forays into the life insurance sector through a tie-up with a UK insurance company. quot;There is synergy between housing finance and life insurance. We are actively negotiating with a clutch of foreign insurance companies,quot; said Kapil Wadhawan, executive director of the company.

Dewan Housing is one of four corporations selected to participate in the pilot securitisation project launched by the National Housing Bank NHB. The company is also planning expansion of its activities by opening offices in different parts of the country to tap the semi-urban and rural customers, a company release said.