NHB to reduce interest rate for HFCs
National Housing Bank has signaled a reduction in interest rates for housing finance companies (HFCs) by reducing its prime lending rate from 10.5 per cent to 10 per cent.
The rate reduction is set to affect medium and smaller-sized players in the industry as NHB accounts for 25-30 per cent of the resources raised by HFCs.
It looks a part of the deliberate efforts to generate more demand and growth for the industry. Already several banks have reduced home loan rates and some such as State Bank of India (SBI) have announced a fresh reduction in the base rate after Reserve Bank of India (RBI) lowered the cash reserve ratio (CRR).
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cash reserve ratio(CRR), Home Loan rates, Housing finance, housing finance companies (HFCs), interest rates on housing finance, National Housing Bank, prime lending rate, RBI, reduction in interest rates, SBI
