In the wake of the Reserve Bank of India (RBI) cutting short-term lending rates, the National Housing Bank (NHB) on Tuesday reduced its prime lending rate (PLR) to 9.75% from 10% with immediate effect. The floating rate PLR-linked refinance portfolio of NHB will now be repriced at 25 basis points less, the bank said in a statement. Also the Bank, in its asset liability committee meeting held on Tuesday, decided to reduce interest rate on special refinance scheme by 25 basis points.
To boost housing finance for economically weak and low income segments in urban areas, NHB said it has reduced interest rates under its special refinance scheme for urban low income housing. Under the scheme, NHB provides refinance at a fixed rate for up to 15 years, allowing lenders to extend long-term fixed rate loans to the borrowers in this income segment.