NEW DELHI: Housing, auto and corporate loans are all set to become cheaper with several PSU and private banks steeply reducing benchmark lending rate by up to 1.48 percent after spurt in deposits following demonetisation.
Country's largest mortgage lender HDFC on Tuesday reduced its home loan rates by up to 0.45 percent.
Loans up to Rs 75 lakh will attract interest rate of 8.7 percent per annum, while it will be 8.75 percent for higher amounts, HDFC said in a statement. A woman applicant will get a discount of 0.05 percent in interest rate.
Meanwhile, public sector lender Bank of India (BoI) too announced reduction in benchmark lending rate by up to 0.9 percent.
For one year, the MCLR, or marginal cost of funds based lending rate, is now 8.50 percent, down 0.75 percent. However, overnight MCLR has been reduced by 0.9 percent to 8.1 percent effective January 7.
Indiabulls Housing Finance (IBHFL) on Tuesday also reduced its home loan rates by 45 basis points, bringing it down to lowest in six years. As per the revised rates, applicable from today, the interest rate on loans up to Rs 75 lakh is 8.7 percent.
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