For loans of term extending up to five years, the interest cost has been brought down by 50 basis points, to 9 per cent (adjustable) and 9.25 per cent (fixed). The rates for the term of 11 years to 20 years have been brought down by 75 basis points, to 9.75 per cent (adjustable) and 10 per cent (fixed).

On the term six years to 10 years too, the rate has been brought down by 75 basis points to 9.25 per cent (adjustable) and 9.5 per cent (fixed). The rates of interest under annual rest option have also been suitably reduced.

HDFC’s retail prime lending rate is now 10 per cent, and this will benefit all customers who have availed of loans under the adjustable rate home loan scheme which is linked to this rate.

The company had dropped its retail deposit rates by 0.5 percentage points on varying maturities only on 29 January 2003. This is the fifth time during the current financial year that HDFC is dropping its deposit rates.

The drop in deposit rates has been 325 basis points to 350 basis points since April 2001 and 175 basis points to 215 basis points since April 2002. In line with the reduced cost of funding, HDFC is reducing rates on loan products such as NRI housing loans, home extension and home improvement loans, too.

HDFC has also introduced a three-month rest review cycle under its adjustable rate home loan scheme.

The revised rates for NRI (monthly rest) loans are an adjustable rate of 9 per cent and a fixed rate of 9.25 per cent, both down by 50 basis points for loans of term up to five years. For the six-year to 10-year term, the adjustable rate is now 9.25 per cent and 9.5 per cent, both down by 75 basis points.