HDFC cuts RPLR by 5 bps effective from March 9

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Published: March 5, 2020 2:12 AM

Effective from February 10, the country's largest lender, State Bank of India, cut marginal cost of funds-based lending rate by 5 bps across all tenors, bringing the one-year MCLR to 7.85% from 7.90% per annum.

The revised rates will apply to salaried borrowers.The revised rates will apply to salaried borrowers.

Mortgage lender Housing Development Finance Corporation on Wednesday reduced its retail prime lending rate (RPLR) by 5 basis points (bps). The new RPLR will be effective from March 9 and will make borrowing cheaper for all existing customers.

The RPLR, on which adjustable rate home loans are benchmarked, will range from 8-8.40% from March 9, compared with 8.05-8.45% earlier. The revised rates will apply to salaried borrowers.

The move comes at a time when other lenders have also been reducing their rates. Effective from February 10, the country’s largest lender, State Bank of India, cut marginal cost of funds-based lending rate by 5 bps across all tenors, bringing the one-year MCLR to 7.85% from 7.90% per annum. Effective from February 12, Bank of Baroda also cut marginal cost of funds-based lending rate by 10 bps.

During the last bi-monthly monetary policy review on February 6, Reserve Bank of India (RBI) left the repo rate unchanged at 5.15%. The repo rate is the interest rate at which the RBI lends to commercial banks. It is also the benchmark against which commercial banks and non-banking financiers set their lending rates. RBI also took unconventional steps to boost credit transmission. Growth in bank loans to individuals and companies, for instance, plunged to 6.3% year-on-year in the fortnight to February 14, the slowest pace since May 2017.

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