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HDFC bank, Bank of India announce cut in lending rates

HDFC bank, Bank of India announce cut in lending rates.Taking a cue from the top PSU banks, country’s largest mortgage lender HDFC today reduced its home loan rates by up to 0.45 per cent.

HDFC bank, Bank of India announce cut in lending rates

Loans up to Rs 75 lakh will attract interest rate of 8.7 per cent per annum, while it will be 8.75 per cent for higher amounts, HDFC said in a statement. A woman applicant will get a discount of 0.05 per cent in interest rate.

HDFC bank, Bank of India announce cut in lending rates

HDFC bank, Bank of India announce cut in lending rates

HDFC’s earlier benchmark rate was 9.1 per cent.

The revised rates are effective from today.

“Over the past couple of months we have seen a drop in our marginal costs of funds and as always HDFC has ensured that benefit is passed on to its customers,” said Renu Sud Karnad, Managing Director, HDFC.

The State Bank of India,the Union Bank and the Punjab National Bank had on Sunday announced cut in their lending rates.

Besides HDFC bank, the state-run Bank of India on Tuesday also announced reduction in benchmark lending rate by up to 0.9 per cent.

For one year, the MCLR, or marginal cost of funds based lending rate, is now 8.50 per cent, down 0.75 per cent.

However, overnight MCLR has been reduced by 0.9 per cent to 8.1 per cent effective January 7.

Following these cuts, which comes after a nudge from Prime Minister Naredra Modi in his televised address to the nation last Saturday, loans are set to become cheaper.

Home loan rates have fallen to their lowest level in six years with the State Bank of India, the country’s largest lender, cutting the effective rate to 8.6% from 9.10%.

While the SBI cut its one-year marginal cost of lending rate (MCLR). the benchmark to which home loans are linked to 8%, against 8.9% earlier, it kept the spread above MCLR at 60 basis points, against 20 basis points earlier.

HDFC bank, Bank of India announce cut in lending rates

Earlier, ICICI Bank, which is among the top three home loan providers, also cut its home loan rate by 45 basis points (100bps = 1 percentage point) to 8.65% from 9.1%.

The bank has also reduced its benchmark rate.the one year marginal cost of lending rate (MCLR) by 70 basis points to 8.2% from 8.9% earlier.

Following the rate reduction, the private bank’s home loans are available 5bps higher than SBI’s best rate of 8.6%.






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