HDFC slashes lending rate by 10 basis points, effective from Oct 15

Mortgage lender HDFC Ltd on Monday slashed its benchmark lending rate by 10 basis points, a move that will bring down interest rate for existing as well new borrowers.

The rate cut is in line with other lenders who followed the moderation in benchmark rate effected by RBI earlier this month.

The new rate will be effective from October 15, HDFC said in a statement.

The finance company has reduced Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 10 basis points, it said.

New rates will now range between 8.25 per cent and 8.65 per cent and the change will benefit all existing customers.

Earlier this month, RBI cut interest rates for the third time this year by 25 basis points to its lowest level in nine years and signalled more easing as it looks to support the economy growing at its slowest pace in six years.

The Reserve Bank of India (RBI) cut the repo rate to 5.75 per cent and reverse repo rate to 5.50 per cent and said it expects banks to transmit these to home, auto and other loan borrowers faster.