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In a significant relief for borrowers, housing finance company HDFC has cut its Retail Prime Lending Rate on housing and non-housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 20 basis points.

“The change will benefit all existing HDFC retail home loan and non-home loan customers,” HDFC said in a statement, adding that this is effective June 12.

The new rates will now range between 7.65 per cent and 7.95 per cent for existing salaried home loan customers.

The announcement by HDFC comes just days after State bank of India cut MCLR by 25 basis points across all tenors.

Meanwhile, the mortgage lender also plans to raise up to ₹4,000 crore via bonds on private placement basis.

“The object of the issue is to augment the long-term resources of the corporation. The proceeds of the present issue will be utilised for financing and refinancing the housing finance business requirements of the corporation,” it said in a regulatory filing on June 11.

The issue size is pegged at ₹2,100 crore with an option of oversubscription of up to ₹1,900 crore. The bid for the secured redeemable non-convertible debentures will open on June 15 and close on the same day. HDFC will offer a coupon rate of 7.25 per cent per annum payable annually. The redemption date will be June 17, 2030.