The rate hike is in line with other lenders including the State Bank of India and the Bank of Baroda
The rate hike is in line with other lenders including the State Bank of India and the Bank of Baroda
Mortgage lender HDFC Ltd hiked its benchmark interest rate by 5 basis points on Sunday, a move that will raise the PMI for existing borrowers.
The rate hike is in line with other lenders including the State Bank of India and the Bank of Baroda.
“HDFC is increasing its Retail Prime Lending Rate (RPLR) for home loans, against which its Adjustable Rate Home Loans (ARHL) are measured, by 5 basis points effective May 1, 2022,” the company said in a statement.
Nothing changes in lending to new borrowers. The interest rates for new borrowers range between 6.70% and 7.15% depending on the loan and loan amount.
Last month, SBI and other lenders raised benchmark lending rates and pushed EMIs for existing customers.
Interest rates are expected to become tougher in the coming months as global inflationary fears have been fueled by geopolitical tensions, mainly over the Russian invasion of Ukraine. This prompted the Reserve Bank to raise its inflation target earlier this month.
Even if the key repo rate or short-term lending rates for banks remained unchanged, the RBI said it would continue to focus on withdrawing accommodation to ensure inflation stays within target.
The RBI was mandated to keep retail inflation at 4 percent with a bias of 2 percent either side.
