Loans

HDFC Home Loan Interest Rates

HDFC Bank is one of the leading financial institutions in India, known for its comprehensive range of home loan products. They have helped millions of people in India achieve their lifelong dream of owning a house. The interest rates offered by HDFC bank vary between 8.35% – 8.95%, which happen to be highly competitive in today’s market.

The aforementioned charges and interest rates are subject to change from time to time. It is advisable to visit the official website of HDFC Bank and go through the same before applying for a home loan.

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Before proceeding, keep in mind the following points:

  • The interest rates of these home loans fall under the purview of Adjustable Rate Home Loan, which is in turn linked to the Retail Prime Lending Rate (RPLR) offered by the HDFC Bank.
  • A change in the RPLR will result in a corresponding revision in the lending rate of your home loan. If the interest rate increases, then the interest component of your EMI will also increase, which in turn will increase the tenure of your loan. Similarly, a decrease in the interest rate will lead to a reduction of your loan tenure.
  • Additionally, the interest rates mentioned here are the same for all home loan products (unless mentioned otherwise) offered by HDFC Bank, for each of the respective categories (salaried and self-employed). This is applicable to the TruFixed Home Loan product as well, which offers a fixed interest rate for a maximum term of 2-3 years, after which the loan will be automatically shifted to an adjustable rate.

Keki Mistry, the CEO of HDFC which is the country’s largest housing finance company believes that the interest rates will remain stable or rise slightly in the coming months. Mistry clarified that this is expected as the government will try to maintain its fiscal deficit target of 3.2 percent. HDFC reported a net profit of Rs.5670 crore for the third quarter of the financial year. The profit made by the company was more than 233 percent as compared to the profit made during the same period in FY17. CEO Mistry expressed optimism that the company will grow with regards to affordable housing which is being pushed through the Pradhan Mantri Awas Yojana (PMAY). It needs to be mentioned that the company is currently awaiting approval from its shareholders to raise Rs.11,301 crore through private placement and Rs.1,896 crore through Qualified Institutional Placement (QIP).