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Our Bureau

Mumbai, Jan. 31

Housing finance company HDFC said on Thursday that it has reduced its retail prime lending rate (RPLR) by 25 basis points, with effect from February 1.

The reduction in rates will benefit all the existing borrowers. The HDFC’s current RPLR is 14 per cent, which would now come down to 13.75 per cent.

For the new home loan customers, HDFC’s rate of interest under the Adjustable Rate Home Loan continues to be at 10.25 per cent, said a press release.

“The advantage of a cut in RPLR will accrue to all the existing floating rate customers over the period of next three months based on their respective reset dates,” the release said. About eight lakh borrowers will benefit from the rate cut, said an HFDC source.

State Bank of India currently charges between 10-11.5 per cent for loans up to Rs 20 lakh. An SBI official said that no decision has been taken about reducing the rates yet.

A spokesperson for ICICI Bank said the bank would decide based on its cost of funds and market conditions .

More Stories on : Housing Finance | Interest Rates | Housing Development Finance Corporation Ltd

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