HDFC bank cut interest rates on housing loan (home loan) of up to Rs.30 lakh. The bank cut its loan rate to 8.35% for women and 8.40% for others.
HDFC bank has taken this step after ICICI bank, the country's largest private sector lender, slashed its home loan rate by up to 0.3% for home loans up to Rs.30 lakh. ICICI brought its interest rates in line with SBI. ICICI officials shared that they have reduced home loan rates by up to 30 basis points for loans up to Rs.30 lakh to boost the idea of affordable housing.
ICICI bank also shared that it gives its customers taking home loans an opportunity to select the type of interest rate. Customers can enjoy choosing between floating interest rate or a fixed interest rate for the initial two/three years followed by floating rate.
"The bank is trying to support Modi government's vision to provide housing for all by 2020", says ICICI bank MD Chanda Kochar. With this the customers of Economically Weaker Sections (EWS) and Low income Group (LIG) will be able to benefit from the low interest rates by the bank and also the Credit Linked Subsidy by Pradhan Mantri Awas Yojana.
With this reduction in the interest rates on home loans by two of the most influential banks in the country, HDFC and ICICI bank, the people who live on salaried income would be able to get home loans at the lowest rates in the industry.
It is expected that other players in the industry of private and public sector lender space will also cut down rates to stay in the competition.