Housing Development Finance Corp Ltd has cut its retail prime lending rate by 15 basis points, with effect from today, January 19, 2017.
Housing Development Finance Corp Ltd has cut its retail prime lending rate by 15 basis points, with effect from today, January 19, 2017. HDFC, the country’s largest housing finance company, said the reduction in RPLR will also be applicable on loans to non-resident indians (NRIs) and PIO card holders. HDFC offers home loans up to Rs 75 lakh to women customers at 8.65%, while at 8.7% to other customers.
Earlier this month, the lender had cut its home loan rates by up to 45 basis points from the benchmark of 9.1%, as its marginal cost of funds fell.
“Over the past couple of months we have seen a drop in our marginal costs of funds and as always HDFC has ensured that benefit is passed on to its customers,” HDFC’s Managing Director Renu Sud Karnad had said then.
Banks across India have cut their benchmark lending rates owing to a surge in liquidity in the system due to sudden deposits following the demonetisation of high-value currency notes.
MCLR serves as a benchmark for setting various lending rates, including home loan interest rates.
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RBI replaced previously existing base rate with MCLR in April last year, as it felt there was a need for better transmission of RBI’s policy rate actions in bank’s lending rates as well.
State Bank of India – the country’s largest bank, sharply cut it MCLR by 0.9 percentage points earlier this month. Its one-year MCLR is now at 8%.
Other private sector banks including ICICI Bank, HDFC Bank, Kotak Mahindra Bank, Axis Bank and others, followed SBI and cut their rates too. State-run banks including Bank of India, Union Bank and Punjab National Bank also cut their lending rates.
HDFC Ltd shares were trading at Rs 1,248 on NSE, down 0.08%, amid steady broader markets.