Competition from the largest lender of the country, State Bank of India has led HDFC Bank to extend its teaser loan scheme on home loans.
The product would offer a fixed rate of 8.25% till March 2011 and 9.25% for the next 12 months. From April 2012, the prevailing home loan rates will apply.
The policy rate hike by RBI will not affect the bank's prime lending rate or the scheme.
"A quarter-percent hike is a gradual increase. Unless there is either a reduction in liquidity or more of such rate hikes, I don't see rates going up," said Keki Mistry, vice-chairman and CEO.