"Currently, we are seeing that old rates have not changed. We need to understand that whilst the Governor has not increased rates in this policy, he has hinted that the possibility of looking at rates at short notice," company's vice chairman and chief executive Keki Mistry told reporters on the sidelines of an event here.

"Therefore, we need to have a more detailed approach or greater confidence that rates are not going to suddenly spike up and that's why we had just changed the rates for new customers. As and when cost of existing borrowing comes down, we will certainly pass on the benefit back to customers."

As a limited period offer, HDFC had yesterday reduced the lending rates by 0.25 pper cent for a limited period after the country's largest lender State Bank of India

The new rates for HDFC home loans of up to Rs 75 lakh will be 10.25 per cent as against the existing 10.50 per cent. Mistry said in the long term, he expects HDFC loan growth to be at 18-20 per cent.

"If we take a long-term view, we should be looking at (loan) growth, which would be somewhere in the vicinity of 18-20 per cent. We have also qualified by saying that it cannot be 18-20 per cent every quarter of the year," he said.

Mistry said he was hopeful that the demademand for housing loan in the country will remain robust. "With low penetration, rapidly increasing urbanisation and demographics of India, we would believe that demand for the housing loan will continue to remain strong," he said.

Dion Global Solutions Ltd.