The Hindu Business Line : HDFC slashes retail PLR by 50 bps

Mumbai, March 24 HDFC on Tuesday announced that it will reduce its retail prime lending rate (RPLR) by 50 basis points to 14 per cent with effect from March 25. The cut in RPLR will accrue to all existing floating rate customers over the next three months, based on their respective reset dates.

The housing finance company will continue to offer home loans, irrespective of the tenure, to new customers at 9.5 per cent i.e. RPLR minus 450 basis points for loans up to Rs 30 lakhs and at 10.5 per cent i.e. RPLR minus 350 basis points for loans over Rs 30 lakhs.

Mr Deepak Parekh, Chairman, HDFC, said the cost of funds for the housing finance major had come down. Pointing out that the Reserve Bank of India may cut interest rates further, he indicated that lending rates could thaw further, subject to deposit rates coming down. Mr Parekh was speaking on the sidelines of an Indian Merchants’ Chamber function.

According to Ms Renu Sud Karnad, Executive Director, HDFC, “We have, over the last few months, seen that the measures taken by the Government, drop in interest rates, correction in property prices and developers introducing affordable housing by resizing the area has resulted in an increased interest from first time house buyers.”

Related Stories:
Banks take cue from RBI, cut rates

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page