HDFC brings back its teaser loans

Home loans have rates from 8.25% in 2010-2011 to 9% in 2012 to maintain market position.

The largest mortgage company of the country, HDFC Bank has renewed its teaser loan scheme for two weeks. The act by the bank has been a step to protect its market share when its peer and rival SBI has extended the teaser loans till April and is attracting customers through it.

The current teaser rates would be slightly higher than the rates that were charged till February when the bank had stopped this scheme. Under the revived plan, home loans will begin at 8.25% for the fiscal to March 2011, and 9% for 2012. This is compared with 8.25% till March 31, 2012, under the previous plan.

"We have been able to do it because of the cost of funds," said HDFC MD Renu Sud Karnad. "Our spreads are intact. In April, we realised that there was still a window where we can bring down the rates."

View the full story in Rupee Times.