The housing loans provider, HDFC Bank, has lowered its prime lending rate for retail loans segment by 10 basis points to 16.40 percent, from the existing 16.50 percent. The new rates will apply from today. HDFC Bank provides home loans at a rebate of 6 percent to 6.25 percent (for loans linked to RPLR).

Post the interest rates reduction, HDFC will now provide housing finance to customers at interest rates of 10.15 percent for loans up to Rs. 30 lakhs and at 10.40 percent for loans above Rs. 30 lakhs.

The bank issued a statement announcing this, in which it's Managing Director, Ms. Renu Sud Karnad said, "Over the past couple of months we have seen a drop in the cash reserve ratio and a cut in repo rate. This has brought down our costs of funds at a portfolio level. Hence, we are passing on the benefit to existing customers by way of a reduction in RPLR."