The National Housing Bank (NHB), the regulator for housing finance companies, on Tuesday, reduced its benchmark lending rate by 0.25 percentage point to 9.75 per cent, within hours of the RBI reducing key policy rates. “The floating rate Prime Lending Rate (PLR)-linked refinance portfolio of NHB will now be re-priced at 0.25 percentage point less,” the regulator said in a statement. Also the NHB, decided to reduce the interest rate on special refinance scheme by 0.25 percentage point.
The refinance rate has now been reduced to 8.25 per cent from 8.50 per cent in respect of loan up to Rs.5 lakh and 8.50 per cent from 8.75 per cent per annum for loans up to Rs.10 lakh.
