To match its offering with the market leader HDFC, Mortgage player Indiabulls Housing Finance reduced its interest rates for existing borrowers on floating rates by 15 basis points.
Indiabulls Housing Finance’s executive director Sachin Chaudhary told, “The new rates will be according to a customer’s existing Rate and the contract date and it will be within a range of 8.90 percent to 10.50 percent. Most of the customers will be beneficial from February.”
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He said by adding that the reduction will be beneficial all its existing home Loan customers, PIOs and NRIs. It comes on the heels of deducting the rates for new women borrowers earlier this month by 45 bps.
Indiabulls managing director and Vice-chairman Gagan Banga has ascribed the deduction to a plunge in the cost of funds in the latest months from which we have been given another opportunity to pass benefits to our existing customers.
The home loan rates had been reduced by 45 bps to 8.65 percent earlier this month for new women borrowers of till 75 lakh to 8.70 percent for others following a plunge in the marginal cost of funds over the last few months.
Choudhary said a reduction in the marginal cost is led by the rate cut of its funds that follows the demonetization which flooded the market with liquidity.
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He said that our average cost of funds has fall down to 8-8.10 percent post-demonetization.
Choudhary further added that their cost to arrive to customer has also fall down subject to launch of ‘e-home loan’ facility six months earlier.
He added, “The e-Home Loan is the first platform of the industry to fulfill end-to-end online home loans which has assisted us steadily bring down cost-to-income ratio and source incremental loan business. To the extent of 18 percent of our new customers arrived in through this platform.”
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