We get several sign ups every day for switching home loans. In the last two months, we have noticed that a lot of requests are coming from customers of DHFL (Dewan Housing Finance Limited). Naturally, we got curious about why DHFL Home Loan customers are looking to switch in such large numbers. Here is what we found out:
Logo has been used for illustration purposes only.
DHFL is India’s second largest housing finance company in the private sector, after HDFC limited. They have been around since 1984, which is a long time! We found that the cost of funds for DHFL has been over “10.50% for over the last two and half years” (Source: livemint.com). This means that in order to cover their other costs (such as salaries, rent etc.) and to make profits; DHFL needs to charge much higher than 10.50%. That indeed is the case – we have seen DHFL lending rates as high as 12.50% among customers who have been signing up with us to switch their lenders. No wonder, customers are leaving DHFL! We don’t expect this situation to change anytime soon as DHFL raises funds by borrowing primarily from banks. This makes it is very difficult for DHFL to compete with leading banks which lend at 10.15 – 10.25%. DHFL has been well-known among borrowers due to its leniency with certain paperwork and formalities. However, it compensates this feature by lending at high interest rates. Hence, we advice all DHFL customers to review their home loans and transfer to a bank offering a lower interest rate. Start away with the balance transfer home loan calculator below and sign up for a free evaluation of your home loan!
SwitchMe is a registered trademark of SwitchMe Technologies Private Limited. SwitchMe does not claim the right to use any logo/ trademark other than its own. SwitchMe does not represent any other company, bank, or organization in relation to its services.