Considering the fact that the number of home loan borrowers in India is steadily increasing because of the demand for housing, it is a good move when the financial institutions try to relieve the customers whenever possible from paying the hefty interest rates.
This is exactly what some of the home loan lenders have done, HDFC among them. HDFC, which is India’s largest non banking home financer is going to reduce their lending rates by 0.10% across all the tenures for both existing and new home loan borrowers from the 1st of August 2019, The vice chairman and chief executive officer of HDFC Ltd told DNA that this move was being initiated since liquidity in the system had improved considerably which had made it possible to bring down the lending rates.
What else to know
For loans up to Rs 30 lakhs, women borrowers will have to pay an interest of 8.55% and for male borrowers, the rates would be 8.60%. For home loans that are between Rs 30 lakhs and Rs 75 lakhs, the new rates will be 8.80% for women borrowers and for males it would be 8.85%. For loans amount that are going to cross Rs 75 lakhs, the women borrowers will have to pay an interest of 8.85% and men would have to pay 8.90%. As of now, the repo linked home loan option from SBI has the lowest interest rate in the market, standing at 8.40% and it is lower than the interest rate of SBI’s own home loan product by 10 basis points. The move will help a number of customers, both existing and new since they will be less burdened with the interest rates.
The reduction in the rates by HDFC would also follow other bigger banks like SBI, Bank of Baroda and also ICICI Bank, all of whom who have reduced their interest rate quite recently. The SBI, very recently, had further reduced the deposit rates by 0.20% to 0.75% across a number of tenures, because there was excess liquidity and this indicates that there could be another cut in the lending rates prior to the Reserve Bank of India announcing the third monetary policy of the current fiscal. The RBI has lowered the policy rate by 7 basis points during the calendar year alone, while the other banks have brought down the basis points by only 20.