Mortgage player Indiabulls Housing Finance has reduced its interest rates for existing borrowers on floating rates by 15 basis points, matching its offering with that of the market leader HDFC.

“The new rates will vary according to a customer’s existing rate and the contract date and will effectively be in the range of 8.9 per cent on the lowest side and to 10.5 per cent on the higher side. Still most customers will get the benefit from February,” Indiabulls Housing Finance executive director Sachin Chaudhary told PTI here.

The reduction will benefit all its existing home loan customers, including residents and NRIs/PIOs, he said, adding that it comes on the heels of Indiabulls reducing the rates for new women borrowers earlier this month by 45 bps.

Indiabulls vice-chairman and managing director Gagan Banga has attributed the reduction to a drop in the cost of funds in recent months “which has given us another opportunity to pass on the benefits to our existing customers’’.

Indiabulls had earlier this month reduced the home loan rates by 45 bps to 8.65 per cent for new women borrowers of up to 75 lakh and to 8.70 per cent for others following a drop in the marginal cost of funds over the last few months.

Chaudhary said the rate cut follows a reduction in the marginal cost of its funds following the noteban which flooded the market with liquidity.

“Our average cost of funds has come down to 8-8.1 per cent post-noteban,” he said.

Chaudhary also said their cost to reach out to a customer has also come down following the launch of ‘e-home loan’ facility six months ago.

“The e-home loan is an industry-first end-to-end online home loans fulfilment platform which has helped us steadily bring down cost-to-income ratio and source incremental loan business. In Q3, as much as 18 per cent of our new customers came in through this platform,” he added.