HDFC launches holiday home and lite financing facilities

Housing Development Finance Corporation (HDFC) has introduced two new housing finance products.

The first product, "Holiday Home Financing", allows customers to build holiday homes on long-term leased land. HDFC defines holiday homes as properties with bedrooms, attached living rooms and kitchens designed for vacation use and eligible to be rented out.

The facility is offered at an interest rate of 12 percent, with repayment available over a maximum period of 20 years. Customers can also use leased land or other property as collateral.

In addition to salaries, rental and business income will be accepted when assessing eligibility.

The second new product, "Lite Financing", is HDFC’s first mortgage-free loan facility. It is designed to support smaller home improvement needs, such as purchasing furniture or conducting minor repairs for example, replacing kitchen cabinets or buying a new sofa.

Lite Financing is a sub-product of HDFC’s existing home improvement loan scheme and will soon include an Islamic financing alternative, HDFC said.

The facility is offered at 15 percent interest rate and can be repaid over a period of up to five years. Loans ranging from MVR 50,000 to MVR 500,000 are available to customers registered with HDFC who have deposited their salary for 12 consecutive months.