HDFC cuts key interest rate on home loans by 5 bps from March 4

The announcement comes close on the heels of SBI reducing interest rates on home loans

Mortgage lender Housing Development Finance Corporation (HDFC) on Wednesday said that it reduced the Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points to 6.75 per cent.

The changes will be effective from March 4, 2021.

"The change will benefit all existing HDFC retail home loan customers," the company said.

The announcement comes after State Bank of India (SBI) reduced interest rates on home loans earlier this week.

The country’s largest lender, SBI has slashed the rates on home loans by 10 basis points under limited period offer till end Month. The revised rates will start with 6.7 per cent and would be linked to CIBIL credit score.

On Wednesday, HDFC's scrip ended 3.54 per cent higher at Rs 2654.85 a piece on NSE.