I had taken this housing loan from HDFC Limited in June 2007. The loan was floating rate loan at Banks PLR (14%) minus 3%. So, it was 11% at the time loan was taken. Recently I read in the news that HDFC has cut the rates on floating housing loans by 0.50%. I contacted the manager of HDFC Ahmedabad Branch, where I have this loan. What the Manager told me totally shocked me. He said the PLR has not been reduced, but for all the new loans taken after 23/9/2007, HDFC is now charging Banks PLR minus 3.50%. So, keeping the PLR same, while reducing the spread. This is total eye-wash and an attempt not to pass on the rate cut to existing floating rate loanholders. There should be no difference in the default risk of new and existing customers, so the spread (3%) below PLR should be same for all. It is the PLR which should be cut.