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HDFC Targets Rs 3,000 cr Home Loan Disbursement over the Next Two Months

Add comment   |   December 15, 2009    11:53am   |Contributed by Indian Realty News

Eyeing a realty boom, especially in the affordable home segment, HDFC is targeting Rs 3,000 crore home loan disbursement over the next two months. The housing finance company is also planning to open 20 new branches across the country by March. “We plan to open 20 new branches across India this year,” Keki M Mistry, vice-chairman and managing director, HDFC, who will take over as chief executive officer from January 1, said. On Thursday, HDFC opened its seventh branch in Pune taking the tally to 50 across Maharashtra. At present, it has 270 branches in the country.

He said the economy is bouncing back and there is growing demand for affordable homes from individual buyers from all sectors and not only from IT and BPO sectors. “We are targeting home loan disbursement of over Rs 3,000 crore in the next two moths and more than 30 per cent growth rate,” Mistry said. There is enough liquidity at Rs 2.5 lakh crore in the system, he added. He said this is the best time to buy homes with the company’s lowest interest rate announced on December 1 and the prices of affordable housing would not dip any further. “Our home loans are the lowest in the industry at a fixed rate of 8.25 per cent up to March 2012 and then a floating rate for a loan of Rs 30 lakh for 20 years,” Mistry said.

HDFC’s rival the State Bank of India, which launched an aggressive scheme earlier this year, charges a fixed rate of 8 per cent for the first year and 8.5 per cent for the second and third years. From the fourth year, the borrower could opt between a fixed and a floating rate. Mistry said 80 per cent of the business came from an average loan size of Rs 16 lakh to Rs 30 lakh for affordable housing, a 25 per cent growth rate. Last financial year, HDFC disbursed Rs 39,650 crore, against Rs 32,875 crore in the previous year, clocking 21 per cent growth. In the first half, it disbursed Rs 22,342 crore as compared with Rs 17,788 crore in the corresponding period last year.

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