HDFC cuts home loan rates by 5 bps

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Housing Development Finance Corporation (HDFC) on Wednesday reduced its Retail Prime Lending Rate (RPLR) on housing loans by 5 basis points (bps).

“HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021,” the lender said in a statement. The change will benefit all existing HDFC retail home loan customers, the lender added.

HDFC’s move comes just days after State Bank of India (SBI) and Kotak Mahindra Bank announced rate cuts.

India’s largest bank State Bank of India (SBI) on March 1 offered interest concession of up to 70 basis points (bps) on home loans based on credit score and the loan amount. SBI home loan rate starts from 6.70% for loans up to Rs 75 lakh and 6.75% for loans above Rs 75 lakh. Women borrowers get a special concession of 5 bps. The offer is valid until March 31, 2021.

Similarly, hours after SBI’s announcement, Kotak Mahindra Bank Ltd also reduced its home loan interest rates by a further 10 basis points to 6.65% per annum. The special rate is applicable till March 31, 2021 and is claimed to be the lowest rate in the home loan market. It is applicable across all loan amounts.