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Slash in home loan rates due to reduction in cost of funds: HDFC CEO

IANS  |  Mumbai 

Following the cut in rates, Bank's Vice Chairman and CEO Keki Mistry on Tuesday said the reduction in lending rates for is due to diminishing cost of funds and the significant drop in is not expected.

"The have come down quite a lot from last year. Every passing month, the benefit of lower cost of funds is being passed on to consumers. The rates are coming down because of cost of funds has come down.

"The big significant drop in that we saw in January is not going to repeat. The rates can come down up to a territory and it can come down by 5-10 basis points, not much more on that," he told BTVi in an interview.

Private lender reduced its rates for women borrowers to 8.35 per cent and others to 8.40 per cent for home loans of up to Rs 30 lakh.

On May 8, the country's largest provider State of India (SBI) announced a reduction in the home loan rates by 25 bps from 8.60 per cent to 8.35 per cent per annum.

Private sector lender ICICI also reduced its by up to 30 basis points (bps) for home loans of up to Rs 30 lakh.

He agreed that the industry is at the bottom of the home loans rate cut cycle for near term, at least.

Mistry pointed out it is probably the best time to buy homes because the interest rates are at the lowest in the last 7-8 years and property prices have not gone up.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 16 2017. 22:26 IST