Housing finance major, HDFC has reduced its retail prime lending rate (RPLR) by 10 basis points. With effect from February 6, the RPLR will be 16.40 per cent against 16.50 per cent earlier. HDFC gives home loans at a discount, ranging from 6-6.25 percentage points, to the RPLR.
Following the reduction in RPLR, HDFC will offer home loans up to Rs 30 lakhs, and above Rs 30 lakhs at 10.15 per cent (10.25 per cent earlier) and 10.40 per cent (10.50 per cent), respectively.
“Over the past couple of months we have seen a drop in the cash reserve ratio and a cut in repo rate. This has brought down our costs of funds at a portfolio level.
“Hence, we are passing on the benefit to existing customers by way of a reduction in RPLR,” said Renu Sud Karnad, Managing Director, HDFC, said in a statement.