Home Loan Rate Cut On Cards

The rates cut announced by the Reserve Bank of India is set to lead to fresh round of rate cuts in the housing finance sector. The State Bank of India now offers the cheapest home loan at 9.5 per cent. Sources said it may bring it down to 9-9.25 per cent and other banks may also lower their home loan rates over the next few weeks.

The State Bank announced a 25 basis points deposit rate cut yesterday but refrained from cutting its prime lending rate for the time being. Housing finance major Housing Development Finance Corporation (HDFC) is also reducing its deposit rates by 25 per cent from November 1.