HDFC, SBI: Cutting Home Loan Rates, Other Banks May Follow Suit..!


With India's leading home loan finance company HDFC cutting its housing loan rates by 0.10%, if we consider an average housing loan size of Rs. 35 lakh in the metros, the monthly savings on EMIs ( Equated Monthly Installments) for the house owner will be Rs. 245, translating to an annual savings of Rs. 2,940.

With two of the leading housing loan providers in India going for a cut in rates, analysts expect others to follow suit.

HDFC said its retail prime lending rates (RPLR) for floating loans up to Rs. 30 lakh will be 10.15 % per annum from 10.25 % earlier, while on home loans of more than Rs. 30 lakh it would charge interest at the rate of 10.40 %, down from 10.50 % earlier.


 The recent rate cuts by SBI, HDFC and several other banks came after the RBI on January 29, 2013 cut repo rate the rate at which banks borrow money from the central bank by 0.25% to 7.75 % per annum.

The central bank RBI also cut cash reserve ratio (CRR) by 0.25% to 4.25 %, leading to lower cost of funds for banks.

HDFC Home Loan Rate...!
Floating Loans

Loan Amount       Old Rate    New Rate

Up to Rs. 30 lakh     10.25 %    10.15 % 

Above Rs. 30 lakh     10.50 %  10.40 %
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