In the wake of cut in rates and the resultant impact on its borrowing costs, GRUH Finance (GRUH), a subsidiary of HDFC, has reduced its prime lending rate (PLR) by 50 basis points effective from January 1, 2009. The change in PLR would impact all the existing loan customers of the company.
The housing finance company has also reduced its lending rates for incremental loans by 25-200 bps. The revised rates for new home loans under the formal income segment with the monthly variable option now range from 10-13 per cent.
The revised rate of interest band for home loans to the self employed segment, where formal income proof is not available, ranges from 11-14 per cent, the company said in a release.
The company has operations in seven states, which include Gujarat, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, Chattisgarh and Tamil Nadu. Currently, it enjoys a customer base of more than 72,000.
In addition to this, GRUH has revised its deposit rates downwards by 45-90 bps, which will be effective from January 1, 2009. The reduced interest rates for deposits having tenure up to 3 years under the Cumulative Growth Plan is 10.5 per cent.
