HDFC cuts lending rate by 0.5%

Country's premier home loan financier, Housing Development Finance Corporation on Tuesday slashed its lending rates by 0.5 per cent effective.
With this reduction, HDFC's Retail Prime Lending Rate stands at 14 per cent. The lender has lowered its RPLR by one per cent since December 2008.
"We are now seeing a reduction in the costs on a portfolio level and as in the past HDFC has ensured that the reduction in cost is passed on to existing customers by way of a reduction in RPLR," HDFC joint managing director Renu Sud Karnad said.
The benefit of reduction in RPLR will accrue to all existing floating rate customers over the period of next three months based on their respective reset dates, HDFC said.
The home loan lender has seen its costs coming down owing to improved operational efficiency and good quality portfolio, HDFC said.
"HDFC continues to efficiently manage its liabilities and reprice its debts. In the current environment there is a time gap between the reduction in the marginal cost of funds and the portfolio cost," HDFC said.