HDFC revises interest rates on housing loans

HDFC has revised its interest rates on home loans with effect from 1st July 2008.  This is in line with the rates of interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market. HDFC has so far been able to hold on to the rates inspite of the money markets experiencing substantial volatility. Keeping in mind the needs and concerns of our customers we are affecting a moderate increase on all loan products.

HDFC has increased its Retail Prime Lending Rate (RPLR) on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 0.50% with effect from 1st July 2008. The increase in RPLR will affect existing borrowers whose loans come up for re-pricing on or after 1st July 2008. HDFC follows a three month reset cycle for its floating rate loans and hence the change in RPLR will impact the existing customers only over the next three-month period. Prior to the above increase, HDFC was one of the only institutions to have reduced its RPLR by 0.25% in Feb 2008.

For new Home Loan customers the ARHL loans will now be priced at a minimum of 11.00% p.a. while the fixed rates will be at 14.00% p.a.

HDFC has also increased its rates on Deposits by 0.50% across most maturities.

HDFC has the unique advantage in the market of counseling and interacting directly with its customers and hence are able to offer products to the market, which address the specific needs of the customer. HDFC’s timely introduction of the   innovative part fixed-part floating (2-in-1) product has immensely benefited   a large number of customers to hedge their risks in a rising interest rate environment.

All home buyers today should take advantage of the free Counseling facility, which will help them to take informed decisions.

Sourced From: HDFC