HDFC Bank, which is one of the largest private-sector banks and home loan providers in the country, recently announced that it has slashed home improvement loan rates by 20 to 35 basis points (100 basis points is equal to 1 percentage point) for borrowers in Kerala.
Further, the lender has also waived off the processing fee for home improvement loans, in an effort to provide some relief to people in the flood-hit state. HDFC Bank will be providing this loan solely on its home improvement loan for borrowers whose houses have been damaged due to the incessant rains and floods.
HDFC Bank recently issued a release stating that the reduced home improvement loan rate is applicable for properties located in the state of Kerala, even if the borrower is residing elsewhere. However, this discount will be applicable only for loan applications that are submitted by October 31, subject to one’s eligibility criteria and the mortgage lender’s norms. The bank also added that the interest rate charged will be equal to 8.50% as per the adjusted rate home loans (AHRL) and the processing fee for the same would be nil.
India Ratings, which is a leading credit rating agency in the country, has said that the lenders and financiers in Kerala are likely to be affected by defaults in payments due to their exposure to small and medium enterprises (SMEs) and farms. Gold financiers, in particular, are expected to be impacted since their borrowers are quite dependent on agricultural activities.
Sources: The Times of India, ETRealty