HDFC hikes lending rates: Mortgage lender HDFC Ltd on Saturday raised its benchmark lending rate by 25 basis points, a move that will make loans costlier for both existing and new borrowers. The rate hike comes ahead of the RBI’s Monetary Policy Committee (MPC) meeting later next week. It is widely expected that the MPC will increase interest rates to overcome high inflation.
“HDFC raises its Retail Prime Lending Rate (RPLR) on housing loans, at which its Adjustable Rate Home Loan (ARHL) is benchmarked by 25 basis points (bps),” the housing finance company said. in a statement. This is the fifth hike by HDFC in two months. All rates have been increased by 115 basis points since May this year.
The revised rates for new borrowers range between 7.80 per cent and 8.30 per cent, depending on the credit and loan amount. The current range is 7.55 per cent to 8.05 per cent. The rates will be increased by 25 basis points or (0.25 per cent) for existing customers.
HDFC follows a 3-month cycle to re-evaluate its loans to existing customers. Hence, the loans will be revised with enhanced lending rate based on the date of first disbursement of each customer. Financial institutions are increasing interest rates after the repo rate hike announced by RBI in May and June by 40 basis points and 50 basis points respectively.
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