INTEREST RATES/FINANCING PATTERN FOR PROJECT LOANS

(w.e.f. 01.01.2009)

S.No.
Category
Extent of Max. Finance Upto (%)***
Floating Base Rate (BR)#=13.50% p.a.
Fixed Rate (FR)*=(BR+1%) p.a.
A
EWS Housing by all borrowers
90
   
a) Housing projects for widows/SC/STs, physically handicapped. Single woman above 35 years of age & natural calamities affected areas.    1.75% less than BR
 
1.75% less than
FR

 
 
(ii) Others including schemes benefiting EWS family and action plan projects
  1.25% less than BR 1.25% less than
FR
B
LIG Housing Projects by all borrowers
As per guidelines
0.50% less than BR
0.50% less than FR
C
All other schemes i.e. other than as per A&B above 
(i)
Police organization & govt. / public borrowers
90

At BR

At FR
(ii) Direct Government Borrowing/Rated Govt. Agencies ('AA' & above or equivalent rating by CRISIL, ICRA, CARE & FITCH) and Navaratna/ Miniratna PSUs & their SPVs

90

0.25% less than BR

0.25% less than FR

(iii)
Other Borrowers**

70

   
a) Not rated    BR+1%  FR+1% 
b) Rated Private Company #
('AA' & Above or equivalent rating by CRISIL, ICRA, CARE & FITCH)
  BR+0.75%  FR+0.75% 
 

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) the applicable rates will be BR/FR+2% for (C)(ii)(a), BR/FR+1% for (C)(ii)(b) and BR/FR+2.50% for (C)(ii)(c).

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

*       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) 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.