HDFC trims home loan rates again

Housing Development Finance Corporation Ltd. (HDFC) cut interest rates by 50 basis points from 9.5% to 9% for home loans between Rs 30 lakh and Rs 50 lakh. But, the private sector housing loan major has retained old rates for other categories of loans. Earlier in July, HDFC had cut lending rates for new home loan customers by 25-50 basis points. According to the revised structure, loans between Rs 15 lakh and Rs 30 lakh are now available at 9% (as against 9.25% earlier) and loans above Rs 30 lakh are priced at 9.5% (9.75%). Following the reduction, the EMI on a Rs 1-lakh loan with a 20-year tenure will shrink to Rs 884. HDFC’s prime lending rate (PLR) remains unchanged at 13.75%, which means that existing home loan customers will not see any change in EMIs or the cost of fund. A 50-basis point cut in interest rate lowers EMI by around Rs 34 for a Rs 1-lakh loan. HDFC has restructured its loan baskets to create a new product where loans up to Rs 15 lakh are available at 8.75% as against 9.25% earlier, according to reports.