New Delhi, Dec. 9 -- After the Reserve Bank of India (RBI) cut down the major policy rate by 25 basis points to 5.25 percent, leading public and private sector banks have begun to reduce home loans.
Leading private sector lender, HDFC Bank, has reduced its marginal cost of funds-based lending rates by up to 5 basis points across tenures, with the MCLR now ranging between 8.30 percent and 8.55 percent. This is slightly lower than the earlier 8.35-8.60 percent band.
Typically, the banks price a large portion of retail loans against external benchmarks like the repo rate or internal benchmarks, such as the MCLR.
With the decrease in the policy rate, banks typically revise these benchmarks downwards.
Punjab National Bank has revised its rep...