HDFC to Raise Up To $500 Million as External Commercial Borrowing

New Delhi: Housing Finance company HDFC Ltd today said it has got RBI clearance to raise up to $500 million (about Rs 3,100 crore) as Exteral Commercial Borrowing (ECB) to fund its business growth.

The approval to raise up to $500 million is valid for six months, HDFC Ltd said in statement.

HDFC would be raising the money under the ECB window for housing finance companies that the Reserve Bank of India (RBI) allowed for funding affordable housing projects.

Last year, it raised $300 million through ECB, the first by an housing finance company under the low-cost affordable housing scheme of RBI.

Low-cost affordable housing units have been defined as units where the property cost does not exceed Rs 30 lakh, loan amount is capped at Rs 25 lakh and the carpet area does not exceed 60 square metres.

Meanwhile, HDFC today cut home loan rate by 0.2 per cent to 9.9 per cent for new as well as existing borrowers.

Besides, it is also revising its deposit rates.

Earlier this week, many banks including State Bank of India, ICICI Bank, HDFC Bank and Axis Bank cut lending rate by up to 0.25 per cent after RBI Governor Raghuram Rajan's tough talk with bankers.

The central bank kept its policy rate unchanged at 7.5 per cent in its monetary policy on April 7