SBI, HDFC cut home loan rates as RBI keeps policy rates steady

India's two biggest housing financiers, State Bank of India and Housing Development & Finance Corp Ltd (HDFC) have with effect from today cut home loan rates by up to 0.4 per cent for new borrowers.

The move comes a day after the Reserve Bank of India kept its key interest policy rates unchanged.

Women borrowers would get an additional 0.05 per cent concession on card rates, SBI, the country's biggest commercial bank, said in a statement.

SBI home loans will now be available under two slabs - under Rs75 lakh and above Rs75 lakh. Loans of up to Rs75 lakh would be available to fresh borrowers at 10.15 per cent against the existing rate of 10.50 per cent. For women borrowers, the rate of interest after an additional concession of 0.05 per cent would be 10.10 per cent for home loans of up to Rs75 lakh.

For loans of above Rs75 lakh, the new rate would be 10.30 per cent; and 10.25 per cent for women borrowers.

HDFC cut its rates by 0.25 per cent. "This is a limited period offer and is valid for all new applications submitted before 31 January, and first disbursement taken by 28 February 2014," HDFC said in a statement. The new rates for HDFC home loans of up to Rs75 lakh will be 10.25 per cent as against the existing 10.50 per cent.

The RBI in its monetary policy review on Thursday kept its short-term lending rate unchanged at 7.75 per cent, while the cash reserve ratio (CRR) remained at 4 per cent.

In October, SBI had reduced interest rates on loans for car and consumer durables and also decided to lower processing charges to cash in on the festival season demand.