DHFL cuts home loan rate by 25 bps to 9.9%

DHFL, India's second largest housing finance company in the private sector, reduced its home loan rate by 25 basis points to 9.9%. The new rate will come into effect from tomorrow.

"The reduction in the interest rate to 9.90% per annum reflects our commitment towards enabling home ownership in tier 2 and 3 towns for each and every Indian especially in the lower and middle income (LMI) segment," said Kapil Wadhawan, chairman and managing director of DHFL.

Further to the recent announcement made by the Reserve Bank of India's (RBI) decision to cut the interest rates, the step taken by DHFL will enable to pass on the benefit to its end consumers. Since the beginning of 2015, the repo rate or the rate at which banks borrow from the central bank has been cut by 50 basis points to 7.50%.

Earlier this month even large banks had reduced their lending rates and besides that on Friday HDFC announced a cut in its retail prime lending rate (RPLR) by 20 basis points to 9.9%.