HDFC joins festive frenzy, slashes home loan rates

Housing Development Finance Corporation has cut home loan interest rates by 45-60 basis points (bps) for borrowers with credit scores above 800 and seeking loans above ~75 lakh. The rebate will be available till the end of October, with home loans starting from 6.70 per cent. Last week, State Bank of India and Bank of Baroda cut rates by 25-45 bps to grow their home loan business.

HDFC is raising ~2,500 crore by issuing non-convertible debentures that have a 10-year tenure. The coupon rate for debentures is 6.88 per cent. It is raising the money to augment long-term resources. The proceeds of the issue will be used for financing/refinancing the home loan business.