HDFC cuts home loan rate by 15 bps

Leading mortgage lender HDFC on Tuesday slashed its lending rate by 15 basis points amid a gradual decline in cost of borrowing across the system.

The move comes after a few lenders, including the country's biggest lender State Bank of India, trimmed their lending rate.

"HDFC reduces its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 15 basis points (bps), with effect from April 22, 2020," the company said in a statement.

The change will benefit all existing HDFC retail home loan customers, it said.

New rates will now range between 8.05-8.85 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 75 basis points to spur growth amid the COVID-19 crisis.