For Quick Alerts
For Daily Alerts

Will cut rates for existing borrowers only if costs fall: HDFC

By Super

Will cut rates for existing borrowers only if costs fall: HDFC
MUMBAI: After cutting lending rates for new customers, country's largest mortgage lender HDFC today said it may reduce the rates for existing customers if its cost of borrowing comes down.

"Currently, we are seeing that old rates have not changed. We need to understand that whilst the Governor has not increased rates in this policy, he has hinted that the possibility of looking at rates at short notice," company's vice chairman and chief executive Keki Mistry told reporters on the sidelines of an event here.

"Therefore, we need to have a more detailed approach or greater confidence that rates are not going to suddenly spike up and that's why we had just changed the rates for new customers. As and when cost of existing borrowing comes down, we will certainly pass on the benefit back to customers."

As a limited period offer, HDFC had yesterday reduced the lending rates by 0.25 pper cent for a limited period after the country's largest lender State Bank of India

The new rates for HDFC home loans of up to Rs 75 lakh will be 10.25 per cent as against the existing 10.50 per cent. Mistry said in the long term, he expects HDFC loan growth to be at 18-20 per cent.

"If we take a long-term view, we should be looking at (loan) growth, which would be somewhere in the vicinity of 18-20 per cent. We have also qualified by saying that it cannot be 18-20 per cent every quarter of the year," he said.

Mistry said he was hopeful that the demademand for housing loan in the country will remain robust. "With low penetration, rapidly increasing urbanisation and demographics of India, we would believe that demand for the housing loan will continue to remain strong," he said.

Dion Global Solutions Ltd.

Story first published: Saturday, December 21, 2013, 9:54 [IST]
Company Search
Get Instant News Updates
Notification Settings X
Time Settings
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more