Housing Development Finance Corp (HDFC) has reduced the interest rates by 50 bps in the Rs 30 lakh to Rs 50 lakh segment. The decision to cut interest rates has been taken following SBI's deduction in rates by 50-70bps in the same segment, a week ago.

As per the revised rates, HDFC will now offer 9% interest as against 9.5% for the loans between Rs 30 lakh-Rs 50 lakh. But the revised rates will be applicable on new customers only as there has not been any change in prime lending rate (PLR).

Earlier, home buyers taking loan more than Rs 30 lakh have to pay an interest rate of 9.5% rate, but now only those buyers going for loan more than Rs 50 lakh are supposed to pay an interest rate of 9.5%.

Many public sector lending institutions such as SBI, LIC Housing Finance and Canara Bank have also introducted some attractive schemes for home buyers.

Following the tough competition in the segment, HDFC have been compelled to cut the rates.