HDFC cuts home loan rates by 0.1% starting today

HDFC, India's largest non-bank home financier, has reduced its lending rates by 0.10% across tenures for both existing and new borrowers with effect from August 1.

Keki Mistry, vice chairman and chief executive officer, HDFC Ltd told DNA, "Liquidity in the system has improved which is giving room to bring down the lending rates."

Following the cut, the new rates for loans up to Rs 30 lakh for women borrowers will now be priced at 8.55% and for the general category or for the male borrowers they will be priced at 8.60%. For home loans of over Rs 30 lakh up to Rs 75 lakh, the new rate will be 8.80% for women borrowers while for the general category customers it will be 8.85%. For loans above Rs 75 lakh, the rate will be 8.85% for women and 8.90% for the men borrowers.

State Bank of India's repo linked home loan product offers the lowest rate in the market at 8.40% and it is also lower than the bank's own regular home loan by 10 basis points.

Reduction in the rates by HDFC follows the reduction in rates by other big banks such as SBI, Bank of Baroda, ICICI Bank earlier this month.

Earlier this week SBI further cut its deposit rates by 0.20% to 0.75% across various tenures, citing excess liquidity, which may be a prelude to another cut in its lending rates before Reserve Bank of India announces its third monetary policy of the current fiscal. Reserve Bank of India has lowered the policy rate by 75 basis points during the calendar year, but the banks have brought down rates by only 20 basis points.

HDFC Bank