The revised rates for new borrowers range between 7 per cent and 7.45 per cent depending on the credit and loan amount.
Highlight
- HDFC announces 30 bps hike in its lending rate
- Revised rates for new borrowers range between 7 per cent and 7.45 per cent
- The current limit is 6.70 per cent to 7.15 per cent. is
Mortgage lender HDFC Ltd on Saturday announced an increase of 30 basis points (bps) in its benchmark lending rate, a move that will make loans costlier for both existing and new borrowers.
The move comes just days after several lenders including ICICI Bank, Bank of Baroda and Bank of India raised interest rates following the Reserve Bank of India’s surprise repo rate hike on Wednesday.
“HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans, benchmarking its Adjustable Rate Home Loans (ARHL) by 30 basis points,” the housing finance company said in a statement. ,
The revised rates for new borrowers range between 7 per cent and 7.45 per cent depending on the credit and loan amount. The current range is from 6.70 per cent to 7.15 per cent. For existing customers, the rates will increase by 30 basis points or (0.3 per cent).
Earlier this month, HDFC had increased its benchmark lending rate by 5 basis points, making EMIs costlier for existing borrowers.
HDFC follows a 3-month cycle to re-evaluate its loans to existing customers. Therefore, the loans will be revised in line with the enhanced lending rate based on the date of first disbursement.
Financial institutions are increasing the interest rate after 40 basis points and 50 basis points increase in repo rate and cash reserve ratio (percentage of total deposits of banks with RBI), respectively, announced by RBI this week. Did it in the beginning.
After an out-of-turn Monetary Policy Committee (MPC) meeting, the Reserve Bank on Wednesday raised the benchmark repo rate – the short-term lending rate charged from banks – from 0.40 per cent to 4.40 per cent with immediate effect. , with the aim of overcoming rising inflation.
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