Mortgage lender DHFL today joined the rate cut war with bigger rivals by slashing its lending rate to 9.55% to new borrowers for a limited period.
The city-based pure-play mortgage lender lowered its retail prime lending rate by 0.20% and also announced a 0.10% cut to loans written till December 31, taking the effective lending rate down to 9.55% for loans under Rs 25 lakh, a statement said.
This offering is at par with the country's largest lender SBI's minimum rate of lending for non-women borrowers which stands at 9.55%, and better than the 9.65% offered by rivals like HDFC, ICICI Bank and Axis Bank for non-women borrowers for smaller ticket sizes.
In the statement, DHFL said a bulk of its lending is to the low and middle income segment in smaller cities and the average loan size is under Rs 15 lakh.
Home loans are one of the safest bets in a gloomy economy which has affected credit quality at banks. It is also one of the most competitive segments, with lenders trying to outdo each other by rate reductions and other benefits like cutting processing fees.
Axis Bank yesterday introduced a new slab of Rs 28 lakh and announced an offer to provide home loans at 9.60% for salaried people under the amount, which would go up to 9.65% for loans above Rs 28 lakh.