After Indiabulls Housing Finance, HDFC, now Dewan Housing Finance cuts home loan rate

With major NBFCs like Indiabulls Housing Finance and Housing Development Finance Corp trimming down their home loan rates in a move to push affordable housing, now Dewan Housing Finance Limited (DHFL) too followed the suit. 

On Wednesday, the DHFL deducted its home loan interest rate by almost 50 basis points to 8.60% from previous 9.10% effective from today. 

DHFL said, "Rate cut set to actively leverage the potential of affordable housing segment and builds on the positive outlook for the housing finance sector in 2017."

Talking on the housing finance sector, Harshil Mehta CEO OF DHFL said, "The Government’s recent decision to provide interest rate relief to home buyers and to those who wish to plan a home in 2017, as well as several past initiatives have created a growth-enabling and conducive environment for the housing finance sector."

He added, "“Our vision is to bring credit to the lower segments of society who actually require it. Our focus will be on creating the right products through innovation and customization and reaching out through our large distribution network to the tier2 and 3 locations.”

Welcoming the PM Narendra Modi's move for housing loan category, DHFL stated that it will boost mass housing peripheral areas with attractive interest subventions and increase in the number of homes in rural areas. 

To keep up with his commitment on 'Housing for All', Modi while addressing the nation on New Years Eve brought in schemes like  Pradhan Mantri Awaas Yojana in urban areas and to increase the access of credit for SMEs and MSMEs by under-writing loans given by Non-banking Financial Companies (NBFCs).

Recently, Indiabulls Housing Finance and HDFC slashed down their home loan rates by 45 basis points each in different loan amount and tenure. 

The move came in right after when major banks like SBI and ICICI Bank reduced their home loan rates in the range of 45 basis points - 90 basis points, taking the interest rates at six year low. 

Lastly DHFL said, "Together with several supply side initiatives including the Pradhan Mantri Awaas Yojana and the Real Estate (Regulation and Development) Act 2016, and RBI’s decision to increase loan-to-value (LTV) ratio are set to enhance transparency and boost confidence of home buyers. "