INTEREST RATES/FINANCING PATTERN FOR PROJECT LOANS

(w.e.f. 04.03.2010)

 

 

BASE RATE (BR) = 12.50%**

S.No.

Category

Extent of Max. Finance Upto (%)*

Floating

Rate**

p.a.

Fixed Rate***

(FR) = (Floating Rate+1%) p.a.

A

EWS Housing by all borrowers (sanctioned on or after 24.08.2009)

90

 

a)

Housing   Projects   for Widows, SC/ST/OBC, physically handicapped, Single woman above 35 years of age and natural calamities affected areas.

 

7.00%

 

8.00%

 

b)

Others including schemes benefiting EWS family and action plan Projects

 

7.25%

8.25%

B

LIG Housing Projects by all borrowers (sanctioned on or after 24.08.2009)

As per

Guidelines

7.50%

 

8.50%

 

C

EWS Housing by all borrowers (sanctioned before 24.08.09)

90

 

a)

Housing   Projects   for Widows, SC/STs, physically handicapped, Single woman above 35 years of age and natural calamities affected areas.

 

8.00%

 

9.25%

 

b)

Others including schemes benefiting EWS family and action plan Projects

 

8.25%

9.50%

 

D

LIG Housing Projects by all borrowers (sanctioned before 24.08.09)

 

8.50%

9.75%

E

All other schemes i.e., other than as per A, B, C & D above

i)

(a) Police Organization and Government/ Public Sector Borrowers

90

8.75%

$

10.00%

 

 

(b) Government/ Public Sector Borrowers for Power Projects

 

10.50%

$

11.75%

 

ii)

(a) State Government Borrowings/ Rated Govt. Agencies (‘AA’ & above or equivalent rating by CRISIL, ICRA, CARE & FITCH) and Navaratna / Miniratna PSUs & their SPVs (Direct or Consortium)

90

8.50%

 

9.75%

 

 

(b) Rated Govt. /Public Sector Agencies (‘AA’ & above or equivalent rating by CRISIL, ICRA, CARE & FITCH) and Navaratna / Miniratna PSUs & their SPVs for Power Projects

 

10.25%

 

$

11.50%

 

iii)

Other borrowers**** @

70

 

 

 

(a) Not rated

 

12.25%

 

13.25%

 

 

(b) Rated Private Companies# 

(‘AA’ & above or equivalent rating by CRISIL, ICRA, CARE & FITCH)

 

12.00%

 

 

13.00%

 

 

 

(c) Financing for Affordable Housing by Private Developers/Builders including ‘Affordable housing in Partnership’ Scheme (As per Govt. of India new Scheme)

 

Cost of Dwelling Unit above Rs. 2.25 lacs
(LIG Scheme) and upto Rs 5.00 lacs

 

8.75%

 

9.75%

 

 

Cost of Dwelling Unit above Rs. 5.00 Lakh
but upto Rs. 10.00 lacs

 

9.75%

 

10.75%

 

 

Cost of Dwelling Unit above Rs. 10.00 Lakh
but upto Rs. 15.00 lacs

 

10.75%

 

11.75%

 

 

Cost of Dwelling Unit above Rs.15.00 Lakh
but upto Rs. 20.00 lacs

 

11.25%

 

12.25%

 

 

(d) Co-operative Group Housing Socieites

 

(i)  Government Sector agencies

 

Applicable interest rate under Govt. Sector

 

 

(ii) Private Sector agencies

 

11.75%

 

12.75%

 

 

INTEREST RATE REBATES AVAILABLE FOR ALL LOANS

 

Loan secured by Bank guarantee alone

0.25%

 

@      For Real Estate Projects (i.e. Malls, Market Complex, Office Complex, IT Parks, Hotels, Resorts, Entertainment, SEZ, SPA, Health Club, Wellness Centres constructed along with multiplexes), the applicable Floating Rate will be 13.25% (Base Rate + 0.75%) for (E)(iii)(a). However, exclusive hotel projects and projects where Government extends duty concession / exemption such as SEZ (approved by the Government) the projects will be charged “Other Borrowers” (non-rated) rate of interest plus 0.50 per cent, i.e. 12.75% (Floating).

@@    For Real Estate (Housing & Commercial) Consortium Projects for private sector, the rate of interest will be the applicable rate for private sector housing and commercial sectors.

 #     A fixed rebate of 0.25 per cent shall be applicable to rated private sector agencies (‘AA’ and above or equivalent rating by recognized agencies, i.e. ICRA, CARE, CRISIL and FITCH) on their eligible fixed or floating base rate as per the option of the borrower.

$       For Private Sector Consortium financed projects (other than real estate – Commercial and residential), rate of interest will be highest rate for government sector schemes (i.e. rates under E(I-b)) plus 0.50 percent, or the rate of interest of the consortium leader, whichever is higher.

         For Government Sector Consortium financed projects, where HUDCO is the lead lender, the rate of interest will be the applicable rate of interest of HUDCO.

*       Extent of Finance is maximum available. However, actual loan will be based on Debt Equity Ratio, Means of Financing as per DPR, extent of security requirement or Maximum Extent of Finance, whichever is less.

**      HUDCO reserves the right to review and revise the Floating Base Rate (BR) and the spread as and when necessary.

***   Loan sanctioned/released at Fixed Rate (FR) shall be automatically reset upon expiry of every 3 years at then prevailing fixed rates (FR) from the date of first release. The resetting shall be effective from 1st day of quarter/month (as per billing cycle) in which resetting is due. Necessary provision in the agreement will be necessary stating that “Borrower is agreeable for automatic reset upon expiry of 3 years at then applicable fixed rates (FR) and shall execute a supplementary agreement to this effect in case of resetting of loan on fixed rates (FR) as per this circular.  However, borrowers are given an option to prepay the loan without prepayment charges after 3 years as an alternative to automatic reset.”

****  Subject to borrower maintaining rating of AA or more during entire tenure of loan. However, the rebate in interest rate as per specified norms shall be available during the validity of rating i.e., from the date of rating or date of release of loan whichever is later, and upto validity of rating. The borrower shall also submit annual rating before end of each financial year. Further, in case of subsequent downgrading of rating below AA or non submission of annual rating before end of financial year, interest rates applicable to ‘Not rated’ borrowers shall become applicable from first day of next billing date for the period rating remains downgraded/not submitted.