The rate hike is in line with other lenders including State Bank of India and Bank of Baroda
The rate hike is in line with other lenders including State Bank of India and Bank of Baroda
Mortgage lender HDFC Ltd on Sunday increased its benchmark lending rate by 5 basis points, a move that will raise EMIs for existing borrowers.
The rate hike is in line with other lenders including State Bank of India and Bank of Baroda.
“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.
There is no change in the borrowings for new borrowers. Rates for new borrowers range between 6.70% and 7.15%, depending on the credit and loan amount.
Last month, SBI and other lenders raised benchmark lending rates while pushing EMIs for existing customers.
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. This prompted the Reserve Bank to raise the inflation target earlier this month.
Even though it asked banks to keep the key repo rate or short-term lending rates unchanged, the RBI said going forward it will focus on the return of housing to ensure that inflation remains within the target.
The RBI has been mandated to keep retail inflation at 4 per cent, with a bias of 2% on either side.