HDFC HOME LOAN - Interest Rate Reduced to 7.35%
HDFC RATE CUT
HDFC reduced its prime lending rate by 20 basis points and this rate has been reduced to 16.20% after the deduction. This will benefit all existing HDFC retail home loan and non-home loan customers.
Prime lending rate is the rate at which commercial banks lend to their most trusted and creditworthy customers. After a 20 bps reduction in the interest rate, HDFC’S new rates will now be between 7.5%-8.5%.
This move of the company is in line with the cut in the loan interest rates of State Bank of India.
HDFC said in a statement, “HDFC is reducing interest rate on its retail loan by 0.20 percent. The new rate will be effective from June 12. This will benefit all retail home loan and non-home loan customers of the company.
These interest rates will be in the range of 7.65 percent to 7.95 percent. Last month, the Reserve Bank of India cut the repo rate by 0.40 percent and brought it to a historic low of 4 percent. Since then, the loan interest rates have been steadily decreasing in the market
HDFC’s SPECIAL INITIATIVE FOR HOME BUYERS
Home loan lender HDFC has launched a special campaign for home buyers looking at Corona, under which the company has launched online property Exo. HDFC statement said that it has started with the first of more than 75 real estate companies of Delhi-NCR. It will soon be expanded to other cities of the country. Under this, many information is being given to consumers, including applying for loans online.
HDFC BANK ALSO CUT MCLR RATE
Private sector HDFC Bank reduced the Fund’s Marginal Cost Based Interest Rate (MCLR) by 0.05%. This deduction is made on the MCLR of each period. According to the bank’s website, the new rates are effective from June 8th 2020.
The MCLR rate will reduce the amount of home loan equated monthly installment. According to HDFC Bank, the MCLR has been reduced to 7.30% for one day and 7.35% for one month period. The one-year MCLR will now be 7.65%. Most consumer loans are linked to this and the three-year MCLR will now be 7.85%.
HDFC has taken this step amid a cut in MCLR of other banks after the Reserve Bank’s policy rate cut. The RBI has cut the key policy rate (repo) by 1.15% since March to revive the economy from the Covid-19 pandemic and lockdown, The banks review their MCLR every month.