HDFC hikes home loan interest rate
HDFC Home Loan Interest Rate: India’s largest housing finance company Housing Development Finance Corporation (HDFC) has announced an increase in the benchmark lending rate on housing loans. This decision will increase the EMI of the existing borrowers.
The mortgage lender said that the retail prime lending rate (RPLR) on housing loans will become costlier by 5 basis points. The increase will be effective from May 1. One basis point is equal to one hundredth of a percentage.
“HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans, at which its Adjustable Rate Home Loan (ARHL) benchmarks are, by 5 basis points, with effect from May 1, 2022,” the company said in a statement. The company said in a statement.
The rate hike is in line with State Bank of India, which last month increased the marginal cost of lending rate (MCLR) on all types of retail and institutional loans by 10 basis points.
HDFC, however, said there has been no change in the borrowings for new borrowers. Rates for new borrowers range between 6.70 percent and 7.15 percent, depending on the credit and loan amount.
Interest rates are expected to harden in the coming months as global inflationary fears stem from geopolitical tensions, mainly triggered by the Russian invasion of Ukraine.
Read more: Home loan, personal loan EMI will increase as SBI hikes interest rates after 3 years