HDFC hikes housing loan rates by 0.3% for all customers from May 9
The move came three days after the RBI raised India’s repo rate by 40 basis points, or 0.4%.
The Housing Development Finance Corporation on Saturday increased its lending rates on housing loans by 30 basis points, or 0.3%, for all its customers. The revision will come into effect from May 9 across all slabs, ANI reported.
This move came three days after the Reserve Bank of India’s raised the repo rate by 40 basis points to 4.40%. The repo rate is the interest rate at which the central bank lends to commercial banks. Typically, banks and other lending institutions raise interest rates for their customers once the repo rate is hiked.
HDFC increases its Retail Prime Lending Rate on Housing Loans, on which its Adjustable Rate Home Loans are benchmarked by 30 basis points with effect from May 09, 2022. pic.twitter.com/cOoBoIM1Q8
— ANI (@ANI) May 7, 2022
The revised lending rates of HDFC will be applicable for both existing and new customers of the lender.
The RBI increased the repo rate earlier this week with the aim of taming India’s retail inflation which accelerated to a 17-month high of 6.95% in March. This was for the third straight month that the price rise indicator was above the central bank’s mandated upper limit of 6%. Retail inflation is likely to rise further due to a jump in oil prices since Russia’s invasion of Ukraine has led to higher consumer prices.