HDFC, Central Bank slash lending rate

A man walks towards an HDFC Bank Ltd. branch in Mumbai. (Source: Bloomberg)

Mortgage firm HDFC had reduced its retail prime lending rate (RPLR) on housing and non-housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 20 basis points, with effect from June 12, 2020. The change will benefit all existing HDFC retail home loan and non-home loan customers.

Central Bank of India has cut its interest rate on external benchmark linked accounts by 40 basis points. Interest rate on home loans has come down to 6.85 per cent. It has also introduced a guaranteed emergency credit line to MSMEs. Interest rate is linked to Repo rate with a cap of 7.5 per cent.

Rates across the banking system have headed south in the last few months, as the RBI and the government work in tandem to propel the slowing economy. The RBI last month cut the policy rate by 40 basis points to 4 per cent.