If you are thinking of taking a home loan, then there is good news for you. Actually, housing loan company HDFC Limited has announced to reduce the interest rate by 0.05 per cent.
The statement issued by the company stated, "HDFC has reduced the Retail Prime Lending Rate (RPLR) on housing loans. After this the Adjustable Rate Home Loan (ARHL) has been reduced by 0.05 per cent. This revised rate of 6 Will be applicable from January. " Let us tell you that HDFC decides the rates on its home loan based on the retail prime lending rate. However, the new HDFC rates will be in the range of 8.20 percent to nine percent. At the same time, this decision of the bank will be applicable for both new and old customers.
Earlier, State Bank of India has also reduced the interest rates on home and auto loans. Now, the bank will give loan to those buying new houses at an interest rate of 7.90 percent. Earlier the interest rate was 8.15 percent. The bank has reduced the external benchmark based rate (EBR) from 8.05 per cent to 7.80 per cent. This is a base rate which is indicative that the loan rate cannot be less than this.
In the last December monetary review meeting of RBI, the repo rate was not cut. However, before this, the RBI had run scissors at repo rate for 5 consecutive times, but according to the expectations of banks, the benefit of this deduction was not passed on to the customers. Explain that on the basis of repo rate, banks have to change their external benchmark rate once every three months. The repo rate fixed by the Reserve Bank of India is 5.15 percent.
