HDFC home loan type, expected spread rate, and effect of rbi rate cut on it

[sal]

Hi all members of technofino,
I've some doubts reg home loan if you could help with them please.

Primary goal: to understand the expected current prevalent & future ROI on hdfc home loan

I've been looking at technofino & reddit threads for the same topic, but even the latest thread I see is from early June, 2025 (before the latest 50bps rate cut from RBI).

I came to know that home loans are 3 types: RLLR, RBLR, MCLR (from https://www.reddit.com/r/IndiaInvestments/s/V2cgGqR3Fh)

Q1: are HDFC loans based on RLLR or RBLR? Or would I need to ask the bank official only.

Q2: after rate cuts from RBI, I hear that banks sometimes increase the spread while you take a new loan; effectively giving the loan at a higher rate of interest. Hence, I'm doubtful on what interest rate I should currently expect? (after the 3 rate cuts of 2025 so far) This is the main doubt as I read people got loans at 7.~ interest rates a few years ago which got to 9.~ until last year, so I want to take this into consideration.

Q3: in RLLR, spread is fixed. So if repo rate increases/decreases in future, the loan interest rate would also go up/down by the same percentage. In your knowledge or historically, what can be the maximum & minimum ROI for home loan from HDFC?

Additional info:
I've talked to an hdfc rep from my company tie up for home loan on purchase of a 7-8 year old apartment & they've quoted 7.9% interest rate on a cibil score of 780+ as of yesterday.

I assume since I'm getting the loan now, this rate has already accounted for the rate cut, and it's 7.9% post the 50bps rate cut. This means the bank is charging a spread of 2.4% here.

It's my company rep, so the rate of interest should generally be better than what I'd get elsewhere, but I'm not sure on this currently.

Loan amount: 1.2 crores with 25yrs tenure, 92k monthly payment was told to me by bank rep.

 

[thewittypanda]

See, the rate what your company tie up rep is quoting is mostly similar or a lil higher as compared to public sector banks.

Moreover, as far as the experiences I've come across from different people, HDFC generally don't lower the interest rates automatically when a rate cut happens but they increase it automatically as soon as the rate increases. You have to separately request them paying an extra fees and that's a shady practice i believe.

I would suggest try with the PSU banks specifically SBI, BoB and Union Bank. Believe they'll be able to give you a good and lower RoI than the above and the processing fees might be lower or in some cases might get waived off too.

 

[neo.puneet]

Don't go with private banks. Don't go with SBI.
Go with Union Bank or PNB
I have Union at 7.45% and a friend has PNB at 7.45%. Whenever RBI cuts the rate, it is reflected automatically.

 

[viru5678]

Hi all members of technofino,
I've some doubts reg home loan if you could help with them please.

Primary goal: to understand the expected current prevalent & future ROI on hdfc home loan

I've been looking at technofino & reddit threads for the same topic, but even the latest thread I see is from early June, 2025 (before the latest 50bps rate cut from RBI).

I came to know that home loans are 3 types: RLLR, RBLR, MCLR (from https://www.reddit.com/r/IndiaInvestments/s/V2cgGqR3Fh)

Q1: are HDFC loans based on RLLR or RBLR? Or would I need to ask the bank official only.

Q2: after rate cuts from RBI, I hear that banks sometimes increase the spread while you take a new loan; effectively giving the loan at a higher rate of interest. Hence, I'm doubtful on what interest rate I should currently expect? (after the 3 rate cuts of 2025 so far) This is the main doubt as I read people got loans at 7.~ interest rates a few years ago which got to 9.~ until last year, so I want to take this into consideration.

Q3: in RLLR, spread is fixed. So if repo rate increases/decreases in future, the loan interest rate would also go up/down by the same percentage. In your knowledge or historically, what can be the maximum & minimum ROI for home loan from HDFC?

Additional info:
I've talked to an hdfc rep from my company tie up for home loan on purchase of a 7-8 year old apartment & they've quoted 7.9% interest rate on a cibil score of 780+ as of yesterday.

I assume since I'm getting the loan now, this rate has already accounted for the rate cut, and it's 7.9% post the 50bps rate cut. This means the bank is charging a spread of 2.4% here.

It's my company rep, so the rate of interest should generally be better than what I'd get elsewhere, but I'm not sure on this currently.

Loan amount: 1.2 crores with 25yrs tenure, 92k monthly payment was told to me by bank rep.

Refer this thread may help you understand,

Post in thread 'Moving Home Loan from HDFC to HSBC'

Mar 14, 2025

Today received Holi Gift from HSBC Bank wherein they have reduced my interest rates in-line with rate cuts by RBI.
This is really quick and transparent way of working and I am glad I made a right switch.

• viru5678

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