HDFC cuts interest rate on new home loans

HDFC cuts interest rate on new home loans

Mumbai: Mortgage lender Housing Development Finance Corp.(HDFC) on Monday cut the interest rate on new home loans by half a percentage point as funding costs decreased.

The company said it will cut the rate to 10.75% on loans taken by 31 October, while keeping the rate for its existing customers unchanged.

HDFC has a prime rate, or what it charges its best customers, of 14%, according to its website.

“There’s a fall in our cost of funds, which we are passing on to our customers," Mahesh Shah, spokesman for HDFC said on Monday.

“Whether to cut rates for all loans or not will depend on what the central bank does on rates," he added.

The company is cutting its rate for new loans as Indian mortgage companies and banks face slowing demand with higher property prices and interest rates. Bloomberg