HDFC hikes home loan rates by 1%

New Delhi: Your wish to get the keys for your dream house will become a bit more difficult now.

After ICICI bank, HDFC bank has also decided to hike the home loan rates by 50 bps by next week. Deepak Parek Chairman of HDFC Bank clarified that 1 per cent increase in rates will not impact any demand for housing loans. The bank is also expected to hike rates by 1st April.

“We have a unique situation now. It is the year-end for everyone and there is a liquidity crunch. But the government and the RBI have very clearly said that they are taking steps to improve liquidity in the system. If liquidity improves in the system and if more resources are available, then again one can bring rates down, says HDFC Chairman Deepak Parekh.

“The dynamics of floating interest rates is it goes up and also comes down. So, I don't think that we can assume that rates will keep going up just because they have gone up once.”

SBI has increased its home loan rates by 50 to 75 bps. ICICI Bank had raised its floating reference rate by 50 basis point to 9.25 per cent.

With Agency inputs