Nine Banks, HFCs Cut Home Loan Lending rate by 0.15-0.25%

In the last 10 days, at least nine financial institutions have cut their minimum lending rate by 15-25 basis points (bps).

One basis point is one-hundredth of a percentage point. State Bank of India (SBI), HDFC Bank Ltd and Kotak Mahindra Bank Ltd cut their base rate by 0.15% to 9.85% from 10%.

Axis Bank Ltd reduced its base rate by 0.20% to 9.95%. ICICI Bank Ltd cut its base rate by 0.25% to 9.75% from 10%.

Non-banking finance companies including Housing Development Finance Corp. Ltd (HDFC), Dewan Housing Finance Corp. Ltd and Indiabulls Housing Finance Ltd have reduced housing loan rates.

A base rate cut doesn’t always give the same benefit to an existing borrower as it does for the new borrower.

Let’s take a look at the SBI housing loan rate change. “New customers will get home loan at 9.85% & 9.90% whereas an existing customer’s housing loan rates will drop to 9.95-10% from 10.10-10.15%,” said Ms. J. Lakshmi, chief general manager-real estate, Habitat & Housing development, SBI. 

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