New Delhi | Jagran Business Desk: The country's largest mortgage lender HDFC has announced a reduction in its Retail Prime Lending Rate (RPLR) on housing loans. HDFC has announced a reduction in rates on home loans by 0.10 percent during the festive season. The new rates come into effect from Tuesday. HDFC officials said that the rate cut would benefit existing HDFC retail home loan customers as well.

HDFC stock was trending at Rs 2257 on the Bombay Stock Exchange on Tuesday afternoon with a gain of 5 per cent. Earlier this month, the Housing Development Finance Corporation Limited said that its September quarter standalone profit had fallen by 27 per cent to Rs 2,870.12 crore. HDFC reported a profit of Rs 3,962 crore in the year-ago period.

Bank of Baroda and NHB also reduced interest rates in housing loans

Earlier, the Bank of Baroda has also cut Unni Repo Linked Lending Rates (RLLR). The bank reduced its RLLR by 0.15 per cent from November 1. With that, it has come down to 6.85 percent.

Earlier this month, the National Housing Bank (NHB) stated that there were different signs of growth in the housing finance sector. NHB, a regulator of housing finance companies (HFCs), said in a statement that new approvals for housing and non-housing loans by housing finance companies were 130 per cent during September 2020.

NHB said, 'Home loan disbursement by housing finance companies during September 2020 was also 105 per cent better than in September 2019'. Recently several other lenders have also cut interest rates on home loans as Diwali offer.

Posted By: Srishti Goel