HDFC lending rate: Mortgage lender HDFC increases its lending rate by 25 basis points; home loans will become more expensive

Mortgage lender Ltd announced a further hike in its benchmark lending rate by 25 basis points, making home loans more expensive for new and existing borrowers. The hike comes into effect on August 9.

The current hike makes it the second this month, with the major home loan company raising the lending rate by 25 basis points on August 1.

“HDFC is increasing its retail prime rate (RPLR) on home loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 25 basis points, effective August 9, 2022,” the largest said. housing finance company in a statement. statement.

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

This is the sixth increase undertaken by HDFC in three months. In total, the rate has been raised by 140 basis points since May of this year.

For existing customers, rates would increase by 25 basis points or (0.25%). HDFC follows a three-month cycle to reassess its loans to existing customers. Thus, the loans will be revised in synchronization with the increase in the loan rate according to the date of the first disbursement of each client.

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

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