Housing Development Finance Corporation (HDFC) has decided to cut its retail prime lending rate (RPLR) on housing loans, on which its adjustable rate home loans are benchmarked, by 5 basis points (bps) across the board with effect from March 9. The company said the change will also benefit the existing retail home loan customers.

In the case of salaried women borrowers, the interest rate has been reduced to 8 per cent (from 8.05 per cent now) for loans up to ₹30 lakh; 8.25 per cent (8.30 per cent) for loans loans in the ₹30.01 lakh to ₹75 lakh bracket; and 8.35 per cent (8.40 per cent) for loans loans in the ₹75.01 lakh and above bracket.

 In the case of other salaried borrowers, HDFC has reduced the interest rate to 8.05 per cent (from 8.10 per cent now) for loans up to ₹30 lakh; 8.30 per cent (8.35 per cent) for loans loans in the ₹30.01 lakh to ₹75 lakh bracket; and 8.40 per cent (8.35 per cent) for loans loans in the ₹75.01 lakh and above bracket.

This interest rate cut on home loans follows easy liquidity in the financial system. One basis point equals one-hundredth of a percentage point

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