After ICICI Bank and State Bank of India, HDFC has joined the interest rate war on housing loans by slashing both variable and fixed rates by 0.5 to 0.75 per cent for individual loans with effect from February 5.

HDFC retail prime lending rate has also been reduced by 0.25 pc to 10 per cent benefiting the customers who have availed of loans under the adjustable rate home loan scheme which is linked to the RPLR, the housing finance major said in a release in Mumbai on Tuesday.

As per the revision, ARHL rates for a loan tenure of up to five years on monthly rest basis is pegged at nine per cent (9.5 per cent earlier).

In case of 6-10 years and 11-20 years, the new rate would be 9.25 per cent (10 per cent) and 9.75 per cent (10.5 per cent), respectively.

The rate of interest under annual rest option have also been suitably reduced.

The company has also introduced a three month reset review cycle under its ARHL scheme for new customers, as compared to the existing six month reset review cycle.

On the fixed rate option, HDFC said revised interest for up to five-year loan would be 9.25 per cent (9.75 per cent). The rate will be 9.5 per cent (10.25 per cent) and 10 per cent (10.75 per cent) for 6-10 years and 11-20 years, respectively.

Rates dropped for NRIs too

HDFC said the rates for loans to Non-Resident Indians have also been reduced by 0.5 to 0.75 per cent.

HDFC has introduced a loyalty programme for its existing and past loan customers by offering attractive rates on new loans availed by them.

The company has also entered into an arrangement with over 500 top corporate houses across the country to offer special schemes for their employees, it said.

In addition to this, HDFC has also worked out schemes with leading developers to provide its customers a value-added package.

Customers of other housing finance companies/banks can avail of loans from HDFC under it's balance transfer scheme, it added.