HDFC cuts home loan rates by 20 basis points1 min read . Updated: 12 Jun 2020, 10:18 PM IST
The reduced rate will benefit all existing HDFC retail home loan and non-home loan customers
Housing Development Finance Corp. (HDFC) on Friday cut its retail prime lending rate by 20 basis points to 16.2% with effect from 12 June.
The reduced rate will benefit all existing HDFC retail home loan and non-home loan customers.
This is HDFC’s third reduction in its so called retail prime lending rate (RPLR) since March.
Borrowers will save ₹325 per month on instalments on a ₹25 lakh loan with a 20 year tenure and ₹300 per month for a 15-year tenure after the latest reduction.
Prime lending rate is the rate at which commercial banks lend to their most trustworthy and creditworthy customers. Following the reduction, HDFC’s new rates will now range between 7.5-8.5%.
The move comes after State Bank of India reduced its marginal cost of funds based lending rate (MCLR) by 25 basis points across all tenors. SBI’s one-year MCLR, against which home loans are typically benchmarked, now stands at 7% per annum.