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Home loans to cost more as HDFC hikes lending rates following RBI’s repo rate hike
New Delhi: Just a few days after the Reserve Bank India (RBI) announced a 40-basis point hike in its repo rate, Housing Development Finance Corporation or
The latest rates will be effective from May 9, 2022 and will be applicable for all borrowers, existing as well as new. “HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 30 basis points, with effect from May 9, 2022,” the firm informed in an exchange filing.
“HDFC follows a 3-month cycle for reprising its loans to existing customers. So the loans will be reprised based on the date of the first disbursement of each customer”, the lender said.
HDFC’s hike announcement means that its home loan borrowers will see an increase in their EMIs. From May 9, HDFC’s interest rates will be in the range of 7-7.45 per cent.
Check the latest rates here:
The hike also follows the mortgage lender’s announcement to increase its RPLR by 5 basis points for existing borrowers with effect from May 1, 2022. Since the central bank’s announcement to increase the repo rate, many banks have increased home loan interest rates.
Earlier this week, private lender ICICI Bank raised its external benchmark lending rate by 40 basis points to 8.10 per cent while Bank of Baroda hiked its repo linked lending rate to 6.90 per cent.
Meanwhile, RBI Governor Shaktikanta Das on Wednesday said the central bank’s Monetary Policy Committee (MPC) held an off cycle-meeting between May 2 and May 4 amid high retail inflation and unanimously voted to increase repo rate by 40 basis points to 4.40 per cent with immediate effect.
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