Hudco slashes interest rates

The scheme introduced a year ago has received overwhelming response, he said. Hudco Niwas has sanctioned more than Rs 1,251 crore for 1.80 lakh applicants across the country and released over Rs 804 crore in first year of operation beginning March 1999.

The scheme will now charge 11.50 per cent interest rate for loans up to Rs 50,000, 12.75 per cent for loans between Rs 50,000 and two lakh and 13.50 per cent for loans ranging between Rs two lakh and 50 lakh.

The overall saving to a borrower following these reductions will range between five and 15 per cent of the loan amount, depending upon the amount and period. For example, on a loan of Rs one lakh with a maturity of 15 years, a borrower will save up to Rs 15,149.

Thus, the overall benefit available to Hudco Niwas applicants varies from Rs 13,000 to Rs 5.27 lakh. At the same time, Suresh said, the benefit given in the for MOF free insurance policy for the house and personal accident cover for the applicant and waiver of last two equated monthly instalments makes Hudco Niwas attractive and competitive.

Elaborating on Hudco’s yearly performance, Suresh said the corporation achieved all-time high sanctions of Rs 8,899.89 crore, marking a jump of 33.5 per cent during 1999-2000 over last year’s performance of Rs 6,666.67 crore.

It provided assistance for construction of 16.34 lakh dwelling units and over 1.8 lakh sanitation units besides taking up 86 urban infrastructure projects. The loan released during the year totalled Rs 4,317.50 crore, up 35 per cent over Rs 3,200.68 crore in the previous year.

As per provisional results for 1999-2000, Hudco registered a quantum jump of 43.13 per cent in profit before tax and 20.27 per cent in profit after tax. The figures are Rs 115.18 crore and Rs 83.84 crore respectively against Rs 80.47 crore and Rs 69.71 crore for 1998-99.

During 1999-2000, Hudco mobilised resources worth Rs 3,836.43 crore, up 18 per cent from Rs 3,240 crore in the previous year. This was done through a basket of options covering both domestic and external funding sources.

In its maiden effort to raise funds from US markets, Hudco raised $10 million (about Rs 43 crore) in the form of bonds under the US aid housing guarantee programme. The funds have been swapped with exim bank for a period of 30 years for rupee funds totalling Rs. 43.60 crore.

Suresh said hudco has initiated action for raising the secondtranche of 20 million dollars (about Rs. 86 crore) from the us capital market under the us housing gurantee programme.