Mortgage financier Housing Development Finance Corporation (HDFC) has reduced its home loan rates by 10 basis points (bps) with effect from October 15. This will benefit all existing HDFC customers. The new rates will range from 8.25% to 8.65% for salaried customers.
About 90% of HDFC’s customers are salaried.
Several commercial banks had reduced lending rates last week after the RBI decided to reduce the key policy rate, or the repo rate, by 25 bps to 5.15% earlier this month.
Commercial banks, however, had linked their floating retail loan rates like home and auto loan rates, as well as loans extended to MSME customers, to an external benchmark, mostly the repo rate, from the beginning of this month following a Reserve Bank of India direction. As a result, the customers of these banks had seen a drop in the home loan rates.
The home loan rate of State Bank of India, the country’s largest lender, ranges between 8.2% and 8.55% for salaried borrowers.
