HDFC brings back teaser loan rates

“Under this offer,home loans will be available at a fixed rate of 8.5 per cent up to March 31,2011,9.5 per cent for period between April 1,2011 and March 31,2012 and the applicable floating rate for the balance term,” it said.

The new offer comes after the discontinuation of its old scheme,DRHL-3,under which home loans were provided at 8.25 per cent for the first year,9 per cent for the second year and at a floating rate afterwards.

HDFC had last week increased its retail prime lending rate (RPLR) for housing loans by 50 basis points with effect from September 1,2010,saying that the new rates will be applicable across the board for new and existing home loan customers.

SBI had said it might continue its 8 per cent teaser rate beyond September 30. “Eight per cent rates is a viable proposition and there is no reason why it should not continue,” an SBI official said on Monday. SBI had earlier extended its 8 per cent special home loan scheme,for a month with some changes.

Under the existing scheme,the loan attracts an interest rate of 8 per cent in the first year,and 9 per cent in the second and third years.

From the fourth year onwards,home loans up to Rs 50 lakh are charged 9.25 percent interest rate,while higher loans carry 9.75 percent interest rate.

ICICI Bank had discontinued its teaser home loan rates a few months back.