HDFC hikes interest rate on housing loans; EMI to rise for existing borrowers

Image Source : REPRESENTATIONAL (HDFC.COM)

HDFC hikes home loan interest rate

HDFC Home Loan Interest Rate: India’s largest housing finance company Housing Development Finance Corporation (HDFC) has announced to hike benchmark lending rates on housing loans. The decision will increase EMI for existing borrowers.

The mortgage lender said that the Retail Prime Lending Rate (RPLR) on housing loans will become costlier by 5 basis points. The hike will be effective from May 1. One basis point is equivalent to a hundredth of a percentage point. 

“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from May 1, 2022,” the company said in a statement.

The rate increase is in line with the State Bank of India which last month increased the Marginal Cost of Lending Rate (MCLR) on all types of retail and institutional loans by 10 basis points. 

HDFC, however, said that there is no change in the lending for new borrowers. The rates for new borrowers range between 6.70 per cent and 7.15 per cent, depending on credit and loan amount.

Interest rates are expected to harden in the coming months as global inflationary fears have been stoked due to geopolitical tensions, mainly due to the Russian invasion of Ukraine. 

READ MORE: Home loan, personal loan EMIs set to rise as SBI hikes interest rates after 3 years

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