HDFC follows SBI, ICICI to lower home loan rate to 8.35%

Home loan provider HDFC on Monday joined State Bank of India and ICICI bank to announce a 15-basis point reduction in lending rates to 8.35 per cent for women borrowers for low-cost housing.

For general category borrowers of up to Rs30 lakh, the lowest lending rate will be 8.40 per cent, which is a 10 basis point reduction from the earlier level of 8.50 per cent.

For loans between Rs30 and Rs75 lakh, the new rates will be 8.50 per cent for all borrowers and for above Rs75 lakh, new loans will be priced at 8.55 per cent, HDFC, the largest mortgage lender said.

Earlier the lender had a flat rate of 8.50 percent for all types of borrowers.

With this, the three largest players offer similar prices for new affordable home loans.

With this the three major lenders, including state-run SBI, private sector major ICICI Bank and HDFC have a uniform rate of 8.35-40 per cent for all loans for affordable housing.

HDFC's new rates will be applicable with ''immediate effect,'' a release said.