“The product is ready. There is a possibility of interest rates going down. We plan to fix interest rate after the Reserve Bank of India's policy review on December 16,” Mr Sharma told newspersons after inaugurating a three-day property show here on Friday.

The product would be first of its kind in the housing loan market as all existing products are combination products with varying periods of fixed and floating rates.

“We strongly feel that there are customers who prefer fixed rate products,” Mr Sharma said. The proposed Rs 500-crore real estate venture capital fund would be launched in January with an initial fund size of Rs 200 crore.

“We have already tied-up for this amount and don't prefer to wait much longer for remaining amount. The first tranche will be launched next month,” he said.

On the market scenario, the official said demand for residential units in Tier-II and Tier-III cities was robust.

“In major cities there has been some stress, mostly driven by commercial property segment,” he added.

To coincide with the property show, a new product — New Freedom — was launched with a floating rate of interest at 10.40 %.