Mortgage firm HDFC Ltd Monday cut its benchmark lending rate by 10 basis points (bps), lowering interest rate for existing as well as new borrowers. The new rate will be effective from October 15, an HDFC statement said.
HDFC has reduced the retail prime lending rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 10 bps, it said. The new rates for the salaried class will now range between 8.25 per cent and 8.65 per cent depending on the loan amount.
Last week, State Bank of India slashed the interest rate on savings bank deposits (with balances up to Rs 1 lakh) by 25 bps from 3.50 per cent to 3.25 per cent with effect from November 1, 2019.
The state-owned lender also slashed its retail term deposit and bulk term deposit interest rates by 10 bps and 30 bps, respectively, for ‘1 year to less than 2 years’ tenor with effect from October 10, 2019. The bank also reduced the MCLR (marginal cost of funds based lending rate) by 10 bps, making home and personal loans cheaper for customers.
Earlier this month, the Reserve Bank of India cut the repo rate for the fifth time this year by 25 bps to 5.15 per cent — its lowest level in nine years — and signalled more easing as it looks to support the economy, which is growing at its slowest pace in six years.
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