HDFC has increased its retail prime lending rate (RPLR) on housing loans with effect from Monday (August 1), which will make loans costlier for both new and existing borrowers, including equated monthly instalments. Its adjustable rate home loans (ARHL) are benchmarked on RPLR by 25 basis points.
“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 25 basis points, with effect from August 1, 2022,” the housing finance company said in a statement.
The move comes ahead of the RBI’s Monetary Policy Committee (MPC) meeting later next week. The MPC in its previous policy review in June raised the key repo rate by 50 basis points (bps), which was the second hike within almost a month after it increased 40 basis points in an off-cycle policy review in May. The retail inflation in June stood at 7.01 per cent, which is slightly lower than the 7.04 per cent recorded in May but is higher than the RBI’s target limit of 2-6 per cent. In the upcoming policy review also, the MPC is expected to raise the repo rate.
This is the fifth hike by HDFC since May. In the two months, a total of 115 bps has been hiked. The revised rates for new borrowers range between 7.80 per cent and 8.30 per cent, depending on credit and loan amount. The existing range is 7.55 per cent to 8.05 per cent. For existing customers, the rates will rise by 25 basis points or (0.25 per cent).
HDFC follows a 3-month cycle for repricing its loans to existing customers. So, the loans will be revised in sync with the increased lending rate based on the date of the first disbursement of each customer.
According to the lender’s website, its home loan interest rates/ EMI are applicable for loans under the adjustable rate home loan scheme of Housing Development Finance Corporation Limited (HDFC) and “are subject to change at the time of disbursement”. The home loan interest rates are linked to HDFC’s benchmark rate — RPLR — and are variable throughout the tenure of the loan. All loans are at the sole discretion of HDFC Ltd.
Lenders, including Bank of Baroda, Kotak Mahindra Bank and PNB, have been raising both deposits and loan rates for the past two months after the MPC hiked the key repo rates in order to control inflation in the country.
Apart from loans, FD rates are also rising in the country. This week, private sector lender DBS Bank India was the latest to hike its interest rates on fixed deposits (FD) for funds below Rs 2 crore. The new rates have become effective from Thursday (July 28). The lender has increased interest rates across tenures. It now offers interest rates in the range of 2.5-6.25 per cent for the general public and 3-6.75 per cent for senior citizens.
Read all the Latest News and Breaking News here
Comments
0 comment