HDFC cuts prime lending rate by 20 bps, move to benefit home loan customers

Following the rate cut, the new rates of HDFC will be in the range of 7.5% to 8.5%

The Housing Development Finance Corporation (HDFC) on Friday reduced the retail lending rate on both home and non-home loans by 20 basis points with immediate effect.

In a regulatory filing, the company said that the reduction will benefit all existing HDFC retail home and non-home customers.

"HDFC reduces retail prime lending rate on housing and non-housing loans, on which its adjustable rate home loans are benchmarked by 20 basis points, with effect from June 12, 2020," it said.

Following the rate cut, the new rates of HDFC will be in the range of 7.5 per cent to 8.5 per cent.

Interest rates on loans across banks and NBFCs have declined in the past few months owing to the Reserve Bank of India's cuts in repo rate.

Last month, the central bank reduced repo rate by 40 bps to 4 per cent to boost liquidity amid the coronavirus crisis.