1st time since 2003, HDFC cuts home loan rate

MUMBAI:
Finally there is good news for people who have got taken a loan with a floating
interest charge per unit to purchase their dreaming homes. HDFC, the leader in the place finance
business, have decided to cut involvement rates on floating charge per unit place loans for all
its existent clients by 25 footing points. With the leader film editing rates, the
market anticipates it will be only a substance of clip before other players
follow. On Thursday, HDFC said
it would cut its retail premier loaning charge per unit (RPLR) â€" the charge per unit to which all
its involvement rates are benchmarked â€" by 25 footing points to 13.75% per
annum from the 14% earlier. The cut is effectual from February 1. It has,
however, kept its floating charge per unit for new clients unchanged at
10.25%. This agency all HDFC
floating charge per unit clients will see a cut in rates by a one-fourth of a percentage
point. However, the effectual day of the month for each volition vary. "The advantage of a cut
in RPLR will accrue to all the existent floating charge per unit clients over the next
three calendar months based on their several reset dates," HDFC said in a
release. The other major
players in the sector are ICICI Depository Financial Institution and SBI. ICICI Depository Financial Institution is still to take a
decision on revising its lodging loan rates. A top ICICI Depository Financial Institution functionary said its
decisions on place loan rates were based on its cost of funds. "We will continue
to watch the marketplace closely." Till Thursday evening, SBI had not taken any
decision on place loan rates.