HDFC Bank cuts auto loan rates by up to 50 bps

Taking a cue from RBI's rate cut on Tuesday, private sector HDFC Bank has decided to slash auto loan rates by up to 0.5 per cent.

The interest rate on car loan will be lower by 0.25 per cent while two-wheeler loan will be cheaper by 0.5 per cent, a senior bank official confirmed when contacted.

As far as the commercial vehicle segment is concerned, the reduction in rates will be 0.25 per cent.

The new rates would be effective from February 1, the official added.

Last month, the bank had reduced its base rate by 0.1 per cent to 9.7 per cent, the lowest in the market.

At the same time, the benchmark prime lending rate (BPLR) of the bank was also slashed by a similar margin to 18.20 per cent.

The revision in the benchmark lending rate was in anticipation of rate cut by the central bank in its January policy.