Mortgage lender HDFC hikes lending rate by 25 basis points; home loans to become costlier

Mortgage lender HDFC Ltd announced another hike in its benchmark lending rate of 25 basis points making home loans costlier for new and existing borrowers. The hike comes into effect from August 9.

The current hike makes it the second for this month as the housing loan major had increased the lending rate by 25 basis points on August 1.

“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 9, 2022,” the biggest housing finance company said in a statement.

The move came after the RBI, in its latest monetary policy announcement, hiked key interest rates by 50 basis points taking repo to 5.40% in its efforts to cool rising prices.

This is the sixth increase undertaken by HDFC in three months. In all the rate has been increased by 140 basis points since May this year.

For existing customers, the rates would rise by 25 basis points or (0.25 per cent). HDFC follows a three-month cycle for repricing its loans to existing customers. So the loans will be revised in sync with increased lending rate based on the date of the first disbursement of each customer.

Financial institutions are on an interest rate hike spree in line with RBI’s monetary tightening since May.

Source: Economic Times

Leave a Reply

Your email address will not be published.

Back To Top
%d bloggers like this: