HDFC cuts home loan interest rate by 5 bps

The Housing Development Finance Corporation (HDFC), announced on Wednesday that it has cut its Retail Prime Lending Rate (RPLR) on home loans by 5 basis points. In a filing with stock exchanges, HDFC stated, "HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021."

The country’s largest housing finance company HDFC has cut interest rate on its home loans to 6.75% from 6.8%.

According to a Times of India news report, HDFC MD Renu Sud Karnad said this was the best time for homebuyers as besides rates being at an all-time low, many state authorities have reduced stamp duties and reduced circle rates, which have an impact on stamp duty calculations.


HDFC's home loan rate reductions comes just days after banks like the State Bank of India (SBI) and Kotak Mahindra Bank announced rate cuts. However, unlike HDFC, SBI and Kotak Mahindra Bank's reduced home loan rates are available for a limited period.

The State Bank of India (SBI) announced an interest concession of up to 70 bps with interest rates starting from 6.7% onwards for a limited period offer till March 31, 2021.

Kotak Mahindra Bank on Monday announced a 0.10 percentage point cut in its home loan rates for a limited period. Customers will be able to avail home loans for 6.65 per cent till March 31 as part of a special offer after the rate reduction, the bank said in a statement.