Loans set to get cheaper for HDFC Bank and Canara Bank customers

HDFC Bank cuts base rate by 35bps

Good news for home loan borrowers as HDFC Bank and Canara Bank have cut their base rates

  • September 3, 2015  
  • |  
  • UPDATED   15:50 IST

HDFC Bank has cut its base rate by 35 basis points to 9.35%, the lowest in the industry. Experts say other banks are likely to follow suit.

Canara Bank has also cut its minimum lending rate by 0.10 per cent to 9.90 percent.

The Reserve Bank of India has cut the repo rate, three times this year, by 75 basis points (bps). The cut by RBI has given banks some room to bring down their lending rates. However, RBI has complained time and gain that banks have been slow in passing on the benefit of lower repo rate to the customers. Other banks have reduced their home loan rate by a maximum of 25 to 30 basis points.

After the recent rate cut EMIs for HDFC Bank customers have reduced by more than Rs1100 in case of a home loan of Rs50 lakh for a tenure of 20 years at a home loan rate of 10 per cent.