HDFC may reduce PLR by 0.5% in April

Goa With decrease in repo and reverse repo rate by RBI, HDFC Ltd. may reduce the PLR by 0.5% in April. Also it is expected that the deposit rate might also come down next week. HDFC is India's biggest NBFC with a stronghold in Home Loan segment. Last time the rate was increased very sharply by almost 1.5% at end of 2008 which affected a lot of people. People were paying almost 12% when a month ago it reduced the rates by 0.5% in January. Still the rates are hovering around 11%-11.5% for most of its customers. A reduction of 1% on loan of 40 lakhs would mean a saving of apporx Rs. 2700 on a twenty year loan. This when translated in reduction of tenure would take comfortable number of EMI's off your account.