The Hindu Business Line : HDFC hikes lending rates

HDFC Ltd has hiked the floating rates on its home loans by 50 basis points, with a corresponding change in the retail prime lending rate (RPLR) effective Monday.

The revised rates for floating rate loans will be 7.5 per cent per annum onwards. The fixed rates will continue to range between 8.25 per cent and 8.75 per cent per annum. HDFC follows a three-month reset cycle for all its floating rate loans and the change in RPLR will impact the existing customers based on the date of their disbursement. The change in RPLR will result in revision in the repayment term for existing customers while their EMIs will remain unchanged. Hence, there will be no immediate increase in cash flow for existing customers, the release said.

The move is in line with the rates of interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market.

Bond prices have moved up by 200 basis points during the past few months and the cost of borrowing for triple-A companies from institutional investors have increased since April, according to HDFC.

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