An HDFC home loan customer can choose between two types of interest rate options while availing a home loan. These are as follows:
Adjustable Rate Home Loan (ARHL): An Adjustable Rate Home Loan is also known as a floating or a variable rate loan. The interest rate in an ARHL is linked to HDFC’s benchmark rate i.e. Retail Prime Lending Rate (RPLR). Any movement in HDFC’s RPLR may effectuate a change in the applicable interest rates.
TruFixed Loan: In a TruFixed loan, the home loan interest rate remains fixed for a specified time period (for eg., for the first 2 or 3 years of the loan tenure) after which it automatically converts to an Adjustable Rate Home Loan with the then applicable interest rates. HDFC currently offers a TruFixed loan where the interest rate is fixed for the first two years of the loan tenure.