HDFC cuts PLR

Nation's largest mortgage player announced a 0.50% reduction in its retail prime lending rate (PLR) to 14% for existing and new customers.

For new customers borrowing up to 30 lakh, the rate will be 9.50% and for them who borrows more than 30 lakh, the rate will be 10.50%. The housing finance company has reduced its PLR twice in 3 months, reducing total 1%.

HDFC vice-chairman and managing director Ketki Mistry said that there is no significant shifting of borrowers to public sector banks and there is spurt in application of new loans. Mistry added that the company has reduced deposit rates twice in March and cost of wholesale loan is around 8%. Lower cost of fund is the reason for our move and not reducing customers."