HDFC drops interest rates on housing loans to 10.25%

Mumbai: HDFC has announced a reduction in its retail prime lending rate (RPLR) by 0.25 per cent from 10.50 per cent to 10.25 per cent with effect from 14 November 2002. HDFC has also dropped lending rates on its fixed rate loans.

As in the past, HDFC has ensured that reduction in the cost of its resources translates into a benefit in terms of lower costs for the customer. HDFC continues to manage its liabilities and reprice its debts in line with the lower interest rate regime.

Through its active treasury management, HDFC has been able to achieve a cost of borrowing, which is significantly lower compared to the other corporates in both international and domestic markets.

On 1 November 2002, for the third time during the current financial year, HDFC reduced its retail deposit rates by 0.25 to 0.30 per cent on varying maturities. HDFC has effected a 275 basis points reduction in its deposit rates since April 2001.

In line with the reduced costs of funding and HDFC's endeavour to continue to make housing loans more affordable, HDFC has reduced interest rates on all its loan products like home loans, NRI housing loans, home extension, home improvement, home equity, short-term bridging loans and non-residential premises loans to professionals.

The revised rates are as follows:
Annual Rest        
  Fixed ARHL
Term of Loan (Years) Rate of rest (%p.a.) Rate of Interest
(%p.a.)
  New Old New Old
Up to 5 9.50 9.75 10.25 10.50
6 - 10 10.00 10.25 10.25 10.50
11 - 20 10.50 10.75 10.25 10.50
         
Monthly Rest        
  Fixed ARHL
Term of Loan
(Years)
Rate of rest
(%p.a.)
Rate of Interest
(%p.a.)
  New Old New Old
Up to 5 9.75 10.00 9.50 9.75
6 - 10 10.25 10.50 10.00 10.25
11 - 20 10.75 11.00 10.50 10.75

Rates for Loans to Non Resident Indians also reduced:
The rates of interest on NRI loans have also been reduced by 0.25 per cent.
The revised rates are as follows:

NRIs - Annual Rest        
  Fixed ARHL
Term of Loan (Years) Rate of Interest
(%p.a.)
Rate of Interest
(%p.a.)
  New Old New Old
Up to 5 9.50 9.75 9.50 9.75
6 - 10 10.00 10.25 9.75 10.00
         
NRIs - Monthly Rest        
  Fixed ARHL
Term of Loan
(Years)
Rate of Interest
(%p.a.)
Rate of Interest
(%p.a.)
  New Old New Old
Up to 5 9.75 10.00 9.50 9.75
6 - 10 10.25 10.50 10.00 10.25