Major lender Housing Development Finance Corporation (HDFC) decided to cut its home loan interest by 5 basis points (bps) to 6.75% on Wednesday. The bank said that the changes will be effective starting Thursday.

“HDFC reduces its retail prime lending rate (RPLR) on housing loans, on which its adjustable-rate home loans (ARHL) are benchmarked, by 0.05 per cent, with effect from March 4,” the lender said in a statement.

HDFC also outlined that the changes will affect customers who currently have availed home loan benefits from the lender.

The announcement comes two days after State Bank of India (SBI) decided to offer a concession on home loan interest of up to 70 basis points (bps) with the lender’s interest rates starting from 6.7%. SBI also waived the loan processing charges till March 31. Kotak Mahindra Bank also announced that 10 bps cut in its rates for home loans. The lender also said that customers can avail home loans for 6.65% till March 31.

SBI’s announcement came after it signed a Memorandum of Understanding with Shapoorji Pallonji Real Estate and said that customers who wish to purchase home from the builder will be able to avail home loans and get loans approved at a faster rate.

HDFC like SBI also outlined that customers who have good credit histories can avail new loans at 6.75% and it will be applicable irrespective of the amount of home loans.