HDFC Bank cuts auto loan rates by upto 0.5%
New Delhi: Taking a cue from RBI’s rate cut yesterday, private sector HDFC Bank has decided to slash auto loan rates by upto 0.5 percent.
The interest rate on car loan will be lower by 0.25 percent while two-wheeler loan will be cheaper by 0.5 percent, a senior bank official confirmed when contacted.
As far as the commercial vehicle segment is concerned, the reduction in rates will be 0.25 percent.
The new rates would be effective from February 1, the official added.
Last month, the bank had reduced its base rate by 0.1 percent to 9.7 percent, the lowest in the market.
At the same time, the benchmark prime lending rate (BPLR) of the bank was also slashed by a similar margin to 18.20 percent.
The revision in the benchmark lending rate was in anticipation of rate cut by the central bank in its January policy.
Yesterday, the RBI decided to reduce short-term lending rate by 0.25 percent and slash Cash Reserve Bank (CRR) by same margin to inject Rs 18,000 crore of liquidity into the system.
Following the announcement by RBI, IDBI Bank reduced both its deposit and lending rates by 0.25 percent while other banks including State Bank of India (SBI) hinted at cutting their interest rates within next few days.
The Mumbai-based HDFC Bank currently offers car loans between 10.75 percent and 11.75 percent. Post rate cut, the range would be 10.5-11.5 percent for repayment period between 36 and 60 months.
Accordingly, interest rate on two-wheeler loans would be adjusted to between 19.25 percent to 22.25 percent.
With regard to commercial vehicles, the rate on heavy commercial vehicle will be down by 0.25 percent to 11 percent while light commercial vehicle will get reduced to 13.75 percent from existing 14 percent.
The auto loan portfolio of the bank currently stands at about Rs 33,000 crore. The auto loan advances of the bank has been witnessing a growth of 12 percent.