Housing Development Finance Corporation (HDFC) on Friday reduced its retail prime lending rate (RPLR) by 20 basis points, making its cheapest home loan available at 9.9%.
In a regulatory filing, the company said, “HDFC announced a reduction in its RPLR by 20 bps with effect from April 13. This reduction would benefit all customers.” This cut makes the cheapest HDFC loan lower by 10 bps from that of its closest competitor, State Bank of India.
At present, under a limited period offer, customers who apply for home loan on or before April 30 and avail their first disbursement on or before May 31 can avail their home loans at 665- 615 bps lower than the RPLR.
After the Reserve Bank of India (RBI) policy earlier this week, Keki Mistry, vice-chairman & CEO, HDFC, had told FE, “The way I see it is that, as I cannot talk in advance of the asset liability committee, but my sense is that, yes, there is a possibility that we could also look at a rate cut.”
Following RBI’s policy that urged transmission of successive repo rate cuts, SBI, HDFC Bank and ICICI Bank lowered their base rate by 15-25 bps to 9.75-9.85% and SBI chairman Arundhati Bhattacharya said home loans would now be available at 10%.
At present base rate — the lowest lending rate — of all banks stand in the range of 9.75-11%. The base rate of ICICI Bank is at 9.75%; for SBI and HDFC Bank, it is 9.85%, and for United Bank and Union Bank, it stands at 10%. For lenders like IDBI Bank and Punjab National Bank, the base rate is at 10.25% and, for Federal Bank, it is 10.2%.