HDFC cuts benchmark lending rate by 0.25 per cent

Mumbai :Country’s largest mortgage lender HDFC and four other lenders, including Canara Bank and StanChart, cut their base rates by up to 0.25 per cent, a move that will make home, auto and other loans cheaper.

The effective home loan rate for new customers will be 9.65 per cent, while for women borrowers, it will be 9.60 per cent, HDFC said in a statement.

The existing rate for new customers is 9.9 per cent, whereas for women, it’s 9.85 per cent.

This reduction, effective from Tuesday, will benefit all customers, it added.

The rate cut has been triggered by the Reserve Bank revising downwards its benchmark short-term lending (repo) rate by 0.50 per cent in its fourth bi-monthly monetary policy review last week.

Canara Bank and Standard Chartered also lowered benchmark lending rates by 0.25 per cent.

In a filing to BSE, Canara Bank said: “The Board of the bank has approved reduction in the base rate by 25 bps from 9.90 per cent to 9.65 per cent for loans/advances, effective October 7, 2015.”

Standard Chartered, in a statement, announced the reduction of 0.25 per cent in its base rate to 9.5 per cent from the current level of 9.75 per cent effective today.

Corporation Bank said it has revised the base rate for lending to 9.7 per cent from 9.9 per cent from October 8.

Infrastructure financier IIFCL also announced a downward revision in its benchmark rate by 0.20 per cent. With this, IIFCL’s benchmark rate has been revised to 9.7 per cent from 9.9 per cent earlier. This change in benchmark rate will be effective today.

State Bank of Mysore too has revised its base rate to 9.9 per cent from 10 per cent to be effective September 21.

Earlier, a host of other lenders, including SBI, ICICI Bank, Punjab National Bank, Bank of Baroda, Oriental Bank of Commerce and Axis Bank, had announced reduction in their base rates.