HDFC Lowers Lending Rates by 10 Basis Points across Tenors

Bringing a big cheer to its existing and new customers, HDFC Bank which is a leading mortgage lender in the country has announced a 10 basis points cut for its retail loans, across tenors and segments.

The new rates of interest are effective from August 2, 2019. For Home loans up to Rs 30 Lakh, the effective rates are set at 8.60 percent per annum. The women borrowers will get a concessional rate of 8.55 percent per annum.  The lender has said in the press statement that new rate will be applicable to its existing customers as well.

Further, the new rates for loans ranging between Rs 30 Lakh and Rs 75 Lakh, will be 8.85 percent per annum, and likewise the concessional rate for women borrowers will stand at 8.80 percent per annum.

The next segment of borrowers, i.e. Home Loans above Rs 75 Lakh, will cost at 8.90 percent per annum. The women borrowers of this segment would pay the retail rate of 8.85 percent p.a. respectively.

The rate cut can be associated with RBI’s three consecutive reduction of benchmark lending rates to the effect of 75 basis points since February this year.

Just two days ago, Union Bank of India reduced MCLR (Marginal Cost of Funds-based Lending rate) up to 20 basis points across tenors. The public sector bank has reduced overnight as well as one-month MCLR to 8.10 percent and 8.30 percent respectively. One year MCLR has been set at 8.50 percent.

Earlier this month, the State Bank of India had reduced its lending rate by 5 basis points across tenors. Since June, Bank of Maharashtra, Corporation Bank, Oriental Bank of Commerce, IDBI Bank and many other banks have followed suit and reduced the lending rates for customers.