Taking cue from banks, country’s largest mortgage lender HDFC on Tuesday reduced its home loan rates by up to 0.45 per cent.
Loans up to Rs 75 lakh will attract interest rate of 8.7 per cent per annum, while it will be 8.75 per cent for higher amounts, HDFC said in a statement.
A woman applicant will get a discount of 0.05 per cent in interest rate.
HDFC’s earlier benchmark rate was 9.1 per cent. The revised rates are effective from today.
Meanwhile, public sector lender Bank of India too announced reduction in benchmark lending rate by up to 0.9 per cent.
For one year, the MCLR, or marginal cost of funds based lending rate, is now 8.50 per cent, down 0.75 per cent.
However, overnight MCLR has been reduced by 0.9 per cent to 8.1 per cent effective January 7.
On January 1, India’s largest lender SBI had reduced the lending rate by a good 0.9 per cent after Prime Minister Narendra Modi in his new year eve address urged banks to focus on the needs of poor and middle classes. Punjab National Bank and Union Bank followed suit.
Yesterday, five banks reduced their marginal cost of funds–based lending rate (MCLR) across all loan tenures.
ICICI Bank, the country’s largest private sector lender, has reduced its marginal cost of funds–based lending rate (MCLR) by 70 basis points (bps) across all loan tenures.
The bank had fixed its one-year MCLR at 8.20 per cent. It will add a spread of 50 bps to the home loan rates, taking the effective interest rate to 8.70 per cent for loans upto ₹75 lakh. Earlier, the bank was charging 9.15 per cent.
Kotak Mahindra Bank cut its MCLR in the range of 20 bps to 45 bps. Oriental Bank of Commerce cut its MCLR by 80 bps to 8.6 per cent and Andhra Bank by 80 bps to 8.45 per cent. Dena Bank reduced its one year MCLR by 75 bps to 8.55 per cent.
