New Delhi, July 30
Mortgage lender HDFC Ltd raised its benchmark lending rate by 25 basis points on Saturday, a move that will make loans more expensive for existing and new borrowers.
The rate hike comes ahead of the RBI’s Monetary Policy Committee (MPC) meeting later next week. MPC is widely expected to raise interest rates to tame high inflation.
“HDFC is increasing its Retail Prime Rate (RPLR) on home loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 25 basis points (bps), effective August 1, 2022,” said the housing finance company. in a report.
This is the fifth increase made by HDFC in two months. In total, the rate has been raised by 115 basis points since May this year.
Revised rates for new borrowers range between 7.80% and 8.30%, depending on credit and loan amount. The current range is 7.55% to 8.05%.
For existing customers, rates will increase by 25 basis points or (0.25%).
HDFC follows a 3-month cycle to reassess its loans to existing customers. Thus, the loans will be revised in synchronization with the increase in the loan rate according to the date of the first disbursement of each client.
Financial institutions are on an interest rate hike frenzy following the increase in the repo rate by 40 basis points and 50 basis points, respectively, announced by the RBI in May and June.