HDFC Home Loans Rates to Increase as Bank Hikes Lending Rate by Up to 0.20 Percent
The increase in the Retail Prime Lending Rate (RPLR), on which it benchmarks the Adjustable Rate Home Loans (ARHL), is effective from April 1.
Mumbai, April 10: Largest mortgage player HDFC today upped its lending rates by up to 0.20 percent, in line with similar moves by commercial banks.
The increase in the Retail Prime Lending Rate (RPLR), on which it benchmarks the Adjustable Rate Home Loans (ARHL), is effective from April 1, an official statement said. A company spokesperson said the rate hike is progressive, between 0.05 percent to 0.20 percent, with the lowest hike applicable to the low-ticket size loan.
A loan for under Rs 30 lakh by a woman borrower, which is the lowest rate offered by the lender, will now be available at 8.40 percent, the spokesperson said, adding for others it will be 8.45 percent. Loans between Rs 30 lakh to Rs 75 lakh will be available at 8.55 percent for women borrowers and 8.60 percent for others, while those above Rs 75 lakh will be for 8.65 percent for women and 8.70 percent for others.
Despite no rate hikes by the Reserve bank, the liquidity squeeze has resulted in several banks hiking interest rate offerings since late 2017. It started with the private sector lenders like Axis Bank, Yes Bank and Kotak Mahindra Bank hiking their marginal cost of funding-based lending rates, and gradually percolated down to all the banks in the system including the largest lender SBI.