Monday, January 5, 2009

HDFC, BoR, Canara Bank announced cut in lending rates

Private sector lenders HDFC and Bank of Rajasthan following the RBI lines rolled down the lending rates giving relief for both existing and new borrowers while the state-owned Canara Bank has cut the rate for SME.

HDFC country's largest housing finance company has cut the lending rate by 50 basis points for loans of more than Rs 20 lakh for both existing and new customers and has also introduced a new slab for sub-Rs 20 lakh.

After this the loans of up to Rs 20 lakh will draw an interest rate of 10.25 per cent and the rates for loans above this level has been set at 11.25 per cent, down from 11.75 per cent. The new rates will come into effect from Monday.

According to a bank statement Bank of Rajasthan has reduced the rates on its home loans under 'Apna Ghar Scheme' by 1.50 per cent on maturity tenure of up to 10 years and one per cent for maturity tenure of over 10 years.

While the Bangalore-based Canara Bank reduced lending rates as much as 100 basis points for micro enterprises while for small and medium enterprises the reduction will be 50 basis points.

HDFC Ltd has also announced cut in deposit rates by 50 basis points across all maturities.

"The advantage of a cut in retail prime lending rates (RPLR) will accrue to all the existing floating rate customers over a period of next three months based on their respective reset dates," HDFC said in a statement.

Banks announcement of reducing rates has come within 24 hours of Home Minister P Chidambaram announcing in Parliament that the government will convince banks to reduce loans for existing home loan borrowers as well.

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