"In line with the revision of interest rates of Small Savings Schemes, interest rates for the National Small Savings Fund (NSSF) loan to Centre and States for FY 2016-17 has been revised and fixed at 8.8 percent," the Finance Ministry said in a statement.
The effective home loan rate for new customers would be 9.65 percent, while for women borrowers, it would be 9.60 percent, HDFC said in a statement. The existing rate for new customers is 9.9 percent, whereas for women, it is 9.85 percent.
Explaining the series of rate cuts, Ashish Parthasarthy, HDFC Bank says that liquidity in August improved significantly, both in the system as well as in the balance sheets of individual banks.