HDFC-HDFC Bank merger impact on home loan, developer finances and mutual funds: What experts say

financialexpress.com:

HDFC Bank and HDFC (Housing Development Finance Corporation) have become one entity from July 1. The merger is not going to have any large impact on the existing home loan customers of HDFC, except for the change in the name of the lender from HDFC to HDFC Bank.

However, experts believe that the merger will have a positive impact on developer finances and home loan borrowers in future, who may benefit from competition due to the creation of a large entity following the merger. The merger will also have some impact on mutual funds, especially those that have invested previously in HDFC and HDFC Bank.

This article takes a look at the possible impact on existing customers, borrowers and mutual funds, as per experts and the information shared by HDFC Bank.

According to Atul Monga, Co-Founder and CEO, Basic Home Loan, the merger could be advantageous for home loan borrowers. “The larger pool of borrowers resulting from the merger may lead to increased competition among lenders, including HDFC Bank. This competition could translate into lower interest rates and more favourable terms for home loan borrowers,” says Monga.

HDFC Bank says the loan account number and contractual terms of loan agreements of existing customers will remain unchanged. The customers will continue to have access to the HDFC Ltd portal post-merger where users can log in using existing credentials and passwords.

Also Read: Good news for HDFC Fixed Deposit customers: Your deposits to have Rs 5 lakh DICGC guarantee Now

The bank also says that the merger will not impact the home loans of borrowers who got their full disbursement recently and the repayment cycle of the loan will remain unchanged. Further, the EMI will be processed as per loan repayment