HDFC Bank account holders ALERT! Great news, interest rate cut by 10 bps to 8.25 pct effective today; check your eligibility

On October 14, it has been announced that HDFC Bank interest rate will be cut by 10 bps to 8.25 per cent, effective from today. India's lending major further announced that the lowered interest rate would be applicable on both new and old customers. Now, HDFC Bank floating interest rate range has become 8.65 per cent to 8.25 per cent. This rate cut decision from the HDFC Bank has come after series of Indian banks deciding to link their retail loans to the RBI's Repo Rate pattern, which is also known as the Repo Rate Linked Lending Pattern (RRLLP) in banking terms.

Informing about the development, the HDFC Bank spokesperson said, "HDFC Bank has reduced its retail prime lending rate on housing loans, on which its adjustable-rate home loans are benchmarked, by 0.10 percent." The HDFC Bank spokesperson further said that the new lending rates will be effective from 15th October 2019.

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In recent times, State Bank of India or SBI, Indian Overseas Bank or IOB and some other banks have announced to link their retail loans with the RBI's Repo Rate pattern. So, the decision taken by the HDFC Bank to slash its lending rate by 10 bps is linked to the recent rate cuts by the RBI since February. The Apex Indian Bank has slashed Repo Rate by 1.35 per cent since February 2019.