DHFL cuts home loan rate by 0.2% to 9.35%

New Delhi: Dewan Housing Finance Corporation Ltd (DHFL) on Thursday reduced lending rate by 0.2 percent to 9.35 percent to cash in on the festival fervour.

The revised rate of 9.35 percent for its new customers would be effective from October 11, DHFL said in a statement.

The company will offer the interest rate for loans up to Rs. 30 lakh which is categorised under affordable housing, thereby enabling home ownership in the low and middle income segment, it said.

"Further to the recent announcement made by the RBI to cut the interest rates, this step taken by DHFL will enable it to pass on the benefit to its end consumers," DHFL CEO Harshil Mehta said.

On Tuesday, the Reserve Bank of India lowered the repo rate - the rate at which it lends to banks - by 0.25 percent. The six-member Monetary Policy Committee, which has three members nominated by the government and the rest from the central bank, lowered the repo rate to a six-year low of 6.25 percent, from 6.50 percent.