HDFC cuts the prime lending rate for home loans

HDFC has cut the prime lending rate for home loans by 25 bps and this move will benefit old borrowers who are on floating rates.

If you happen to be a burrower of HDFC, your rate goes down by a quarter percent on your due date, which happens every three months. After you have taken a loan, you are eligible for a change of rate and that is what HDFC has done. So it is the old borrowers who are going to be benefited.

Generally, the EMI is kept the same, and the tenure comes down. However, If someone really wants to reduce his or her EMI for whatever reason, he or she can do so, but generally HDFC changes the tenure of the loan.