HDFC Bank slashes base rate by 0.35%, loans to be cheaper

Zee Media Bureau

New Delhi: Private sector HDFC Bank on Monday cut the base rate by 0.35 percent to 9.35 percent from the existing 9.70 percent, thereby making loans from the bank cheaper.

The new rate will come into effective from Tuesday.

Earlier in June, the bank had cut its base rate or minimum lending rate by 0.15 percent which also lowered the EMIs of its borrowers.

During the RBI monetary policy review in August, Raghuram Rajan maintained status quo and called on banks to cut rates.

This move by India's second largest bank is the first to cut rate following the call of the RBI Governor.

The bank had also cut its base rate on April 13, by 0.15 percent to 9.85 percent following RBI first bi-monthly monetary policy review.