hdfc: HDFC hikes lending rate by 25 bps; home loan to be costlier

Mortgage lender Ltd raised its benchmark lending rate by 25 basis points on Saturday, a move that will make loans more expensive for both 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 curb high inflation.

“HDFC is increasing its Retail Prime Lending Rate (RPLR) on home loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 25 basis points (bps), effective August 1, 2022,” the housing finance company said. in a statement.

This is HDFC’s fifth increase in two months. In total, interest rates have been raised by 115 basis points since May this year.

The revised rates for new borrowers range between 7.80 percent and 8.30 percent, depending on the credit and loan amount. The existing range is 7.55 percent to 8.05 percent.

For existing customers, the rates will increase by 25 basis points or (0.25 percent).

HDFC is on a 3-month cycle of re-pricing its loans to existing customers. Thus, the loans will be revised in accordance with the increased borrowing rate based on the date of each customer’s first disbursement.

Financial institutions are in the process of raising interest rates after the repo rate hike of 40 basis points and 50 basis points, respectively, announced by the RBI in May and June.

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