HDFC Bank, the country''s second largest private sector lender, has decided to cut interest rates on personal and commercial vehicles by up to 150 basis points from Jan 19. Additionally, the bank will also cut interest rates on corporate loans and wholesale credit, a move that will benefit small and medium enterprises and large companies. The reduction will bring a major relief to auto-loan seekers.
Car and commercial vehicle loans will become cheaper by 125 basis points, while interest on two-wheeler loans will be reduced by 150 basis points, according to a source. At the same time, the bank will reduce interest rate on personal loan by 75-100 basis points, from existing 17-17.5 per cent. The auto sector has been under the hold of slowdown for the past two months. In December, the overall domestic auto sales dropped 18.2 per cent as commercial vehicles and two-wheeler sales crashed heavily. Across the board massive rate cut by the bank comes in less than 20 days of reduction in its prime-lending rate by half a percentage point.
At present the bank offers car loan at 13.5-14 per cent, commercial vehicle loans at 14.5-15 per cent, while credit for two wheelers attracts interest rate at 24-24.5 per cent. In addition to this, HDFC Bank will slash rates on loan against properties and securities by as much as 200 basis points. The exiting rates for such credit vary between 13.75 per cent and 15.25 per cent.
The bank''s promoter HDFC Ltd introduced a special housing loan scheme last week, offering 9.75 per cent for new loans up to Rs 30 lakh. Earlier to the special offer, HDFC was charging 10.25 per cent for loans up to Rs 20 lakh and 11.25 per cent for bigger loans. The bank distributes home loan products of its promoter.
Car and commercial vehicle loans will become cheaper by 125 basis points, while interest on two-wheeler loans will be reduced by 150 basis points, according to a source. At the same time, the bank will reduce interest rate on personal loan by 75-100 basis points, from existing 17-17.5 per cent. The auto sector has been under the hold of slowdown for the past two months. In December, the overall domestic auto sales dropped 18.2 per cent as commercial vehicles and two-wheeler sales crashed heavily. Across the board massive rate cut by the bank comes in less than 20 days of reduction in its prime-lending rate by half a percentage point.
At present the bank offers car loan at 13.5-14 per cent, commercial vehicle loans at 14.5-15 per cent, while credit for two wheelers attracts interest rate at 24-24.5 per cent. In addition to this, HDFC Bank will slash rates on loan against properties and securities by as much as 200 basis points. The exiting rates for such credit vary between 13.75 per cent and 15.25 per cent.
The bank''s promoter HDFC Ltd introduced a special housing loan scheme last week, offering 9.75 per cent for new loans up to Rs 30 lakh. Earlier to the special offer, HDFC was charging 10.25 per cent for loans up to Rs 20 lakh and 11.25 per cent for bigger loans. The bank distributes home loan products of its promoter.
