HDFC cuts Housing Loan Rates by up to 0.45%

HDFC cuts Housing Loan Rates by up to 0.45%

Taking cue from banks, India's largest mortgage lender HDFC reduced its housing Loan rates by up to 0.45%.

For one year, the MCLR, (marginal cost of funds) based lending rate, is now 8.50%, down 0.75%.

For one year, the MCLR, or marginal cost of funds based lending rate, is now 8.50%, down 0.75%.

Taking cue from banks, country’s largest mortgage lender HDFC today (Jan 3, 2017) reduced its housing loan rates by up to 0.45%. Loans up to Rs. 75 lakh will attract interest rate of 8.7% per annum, while it will be 8.75% for higher amounts, HDFC said in a statement. A woman applicant will get a discount of 0.05%  in interest rate. HDFC’s earlier benchmark rate was 9.1%. The revised rates are effective from today ((Jan 3, 2017).

“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,” said Ms. Renu Sud Karnad, Managing Director, HDFC.

Meanwhile, public sector lender Bank of India too announced reduction in benchmark lending rate by up to 0.9%.

However, overnight MCLR has been reduced by 0.9% to 8.1% effective January 7, 2017

Housing, auto and corporate loans are all set to become cheaper with several PSU and private banks steeply reducing benchmark lending rate by up to 1.48%  after spurt in deposits following demonetisation.

On 2017 January 1, India’s largest lender SBI had reduced the lending rate by a good 0.9%  after Prime Minister Narendra Modi in his new year eve address urged banks to focus on the needs of poor & middle classes.

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