India: Housing Development Finance Corporation (HDFC) bank which is considered as India’s largest housing finance company has cut down its home loan rate to 9.9% that is lesser than that of SBI.
HDFC bank is the India’s largest housing finance company which reduced its retail prime lending rate (RPLR) by 20 basis points to 9.9 percent and will be active from 13th April 2015.
Earlier, the country’s largest banks, State Bank of India used to offer home loans at 10.15% and HDFC at 10.10%. Now they have cut their rates i.e. SBI to 9.95% for women and 10% for all other borrowers. HDFC will extend loans at 9.9% by cutting the lending rate to 20 basis points. Now the loan rates at HDFC are cheaper than that of State Bank of India.
HDFC reduction in interest rates will bring down the Equated Monthly Installment (EMI) on a Rs. 50 lakh loan by Rs.663 from Rs. 48,583 to Rs.47,920. Reduction rates in HDFC will be a benefit to all customers and interest rate for existing users will also go down. Along with this, it has also cut down its deposit rates across various maturities.
Keki Mistry vice-chairman & CEO, of HDFC said that “As I cannot talk in advance of the asset liability committee, my sense is that, yes, there is a possibility that we could also look at a rate cut.”
ICICI bank has also brought down its base rates by 25 basis points to 9.75 percent. According to Reserve bank of India (RBI) rate cut decisions, earlier SBI has reduced its base rates, the move is being followed by other banks like ICICI bank and HDFC also. ICICI brought down its base rates by 25 basis points to 9.75 percent.