Home loans are now more expensive for new and existing customers according to a 25 basis point increase in the benchmark lending rate announced by mortgage lender HDFC Ltd. The price increase has been effective since August 9.
The main housing loan company had raised the lending rate by 25 basis points on August 1, making the recent hike the second for this month.
The world’s largest home finance company said in a statement that it will increase its retail prime rate (RPLR) on home loans by 25 basis points effective August 9, 2022, on which its rate home loans (ARHL) are calibrated.
The move came after the RBI hiked key interest rates by 50 basis points, taking the repo rate to 5.40%, in its latest monetary policy announcement in a bid to contain rising interest rates. price.
Over the past three months, HDFC has implemented a total of six increases. Since May of this year, the rate has risen by a total of 140 basis points.
Rates would increase by 25 basis points for current customers (0.25%). For its loans to current customers, HDFC uses a three-month term. As a result, loans will be updated to a subsidized loan rate based on each customer’s down payment date.
In line with the RBI’s monetary tightening since May, financial institutions are going wild with interest rate hikes.