Country’s premier housing finance company, Housing Development Finance Corp. Ltd (HDFC) has decided to cut its retail prime lending rate, by 25 basis points to 13.75%.
While, for the new Home Loan customers, its rate of interest under the Adjustable Rate Home Loan continues to be at 10.25% per annum.
The move will benefit old borrowers of the corporation, who have availed of floating rate loans. According to an estimate, over 90% of borrowers are presently on floating rates.
The last time HDFC had announced a rate cut in July 2003. Since then, it had raised its benchmark rate from 9.75% to 14% through 10 hikes. The rate cut takes effect from 1 February, 2008.
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