New Delhi: Housing Development Finance Corporation (HDFC) has slashed home loan interest rates by 5 point basis to 6.75 per cent. The changes will come into effect from today i.e. March 4 and benefit all existing HDFC retail home loan customers. “HDFC reduces its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from March 4, 2021,” LiveMint quoted HDFC as saying. Also Read - iPhone 12 Mini Price Drop Alert:  Big Savings On Apple's Flagship Phone Ahead of Holi. Deets Inside

This comes a day after Kotak Mahindra Bank announced a 0.10 percentage point cut in its home loan rates for a limited period, claiming its offering to be the lowest in the market. Customers will be able to avail home loans for 6.65 per cent till March 31 as part of a special offer after the rate reduction, the bank had said in a statement. Also Read - HDFC Bank Named India's Best SME Bank By Asiamoney

Prior to this, home loan segment leader SBI had cut its offering to 6.70 per cent. Also Read - RBI's Directive Credit Negative for HDFC Bank: Moody's

Interest rates are linked to borrowers” credit score and the Loan to Value (LTV) ratio, Kotak Mahindra Bank said.

“We are delighted to offer consumers a special year-end bonus in the form of even lower home loan interest rates,” it’s president for consumer assets Ambuj Chandna said.

The 6.65 per cent rate is applicable to both home loans and Balance Transfer Loans across amounts, it said.

Notably, Home loan rates were already at a 15-year-low, as banks compete in a market with low credit demand.