Moneycontrol Bureau
Shares of State Bank of India and Housing Development Finance Corporation gained 1 percent each intraday Monday after both firms cut home loan interest rates with effect from today.
Country's largest lender SBI has reduced interest rates on home loans for new borrowers by 25 basis points (bps) to 9.9 percent and for women borrowers, the revised rate would be at the base rate of 9.85 percent.
"Interest rate for SBI existing floating rate home loan borrowers has also been reduced to the extent of reduction in the bank's base rate i.e., 15 bps, said the bank.
Hence, the revised EMI per lakh for loan tenure of 30 years w.e.f. 13.04.2015 will be Rs 867 (for women under HER Ghar) and Rs 871 (for others) as against Rs 885 and Rs 889 respectively, prior to reduction in base rate.
Meanwhile, HDFC also announced a reduction in its retail prime lending rate by 20 bps to 9.9 percent effective today. This reduction will benefit all customers, said the country's largest housing finance company.
Additionally, the firm also received an approval from RBI to raise external commercial borrowing of up to USD 500 million. The said approval will be valid for a period of 6 months.
At 10:19 hours IST, the scrip of Housing Development Finance Corporation was quoting at Rs 1,301.55, up Rs 11.25, or 0.87 percent and State Bank of India was at Rs 284.40, down Rs 1.25, or 0.44 percent.
Posted by Sunil Shankar Matkar
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