Mumbai: Housing Development Finance Corp Ltd (HDFC), India’s oldest mortgage finance company on Tuesday reduced its prime lending rate by 10 basis points (bps). One bps is 0.01 percentage point.
The revision effective Tuesday will reduce interest rate on floating rate home loans up to Rs.30 lakh to 10.15 % per annum while for loans of Rs.30 lakh, interest rate will be reduced to 10.40%, HDFC said in a release.
“Over the past couple of months, we have seen a drop in cash reserve ratio (CRR) and cut in repo rate which have resulted in our costs of funds at a portfolio level come down and as always HDFC has ensured that benefit is passed on to existing customers by way of a reduction in RPLR.” Renu Sud Karnad, managing director, at HDFC said.
Last week, the Reserve Bank of India reduced the repo rate by 25 basis points to 7.75% with immediate effect and the cash reserve ratio by 25 bps to 4% effective 9 February.