The flexible or Adjustable Rate Home Loan (ARHL) is linked to HDFC's RPLR and, therefore, an impact will be seen in the home loan EMIs.
HDFC has announced a cut of 10 basis points in its Retail Prime Lending Rate (RPLR) on housing loans effective August 1,2019. The flexible or Adjustable Rate Home Loan (ARHL) is linked to HDFC’s RPLR and, therefore, an impact will be seen in the home loan EMIs. Unlike banks, where the home loans are linked to the bank’s Marginal Cost of Funds based Lending Rate (MCLR), in the case of housing finance companies such as HDFC, the interest rate is linked to an institution’s internal benchmark taking its own cost of funds into account.
State Bank of India (SBI) had cut its MCLR by 5 basis points across all tenors with its 1-Year MCLR coming down from 8.45 per cent per annum to 8.40 per cent per annum with effect from 10th July 2019, thus making SBI home loans cheaper than before.
HDFC home loan interest rates
For Women on loans up to Rs 30 lakh, the rate of interest is 8.55 per cent to 9.05 per cent, while for others, it is 8.60 per cent to 9.10 per cent.
For Women on loans between Rs 30.01 lakh and Rs 75 lakh, the rate of interest is 8.80 per cent to 9.30 per cent, while for others, it is 8.85 per cent to 9.35 per cent.
For Women on loans between Rs 75.01 lakh & Above, the rate of interest is 8.85 per cent to 9.35 per cent, while for others, it is 8.90 per cent to 9.40 per cent.
Currently, the effective SBI home loan interest rate is between 8.5 per cent and 9.15 per cent.
HDFC also has a TRUFIXED home loan product under which, the interest rate is fixed for the initial two years. The fixed interest rate period will be linked to the date of the first disbursement. At the end of the fixed interest rate period, the home loan will automatically switch to the Adjustable Rate Home loan as applicable then.