The Hindu Business Line : StanChart ups home loan rates by 50 bps

Standard Chartered Bank has increased its home loan rate by 50 basis points with immediate effect. The new rate on floating loan is 9.5 per cent and on fixed loan it is 10.5 per cent, said a spokesperson of the bank.

Home loans form about 50 per cent of the bank's retail portfolio and the average tenor of the loans is 12-15 years.

It was widely expected that loan rates, especially home loan rates, would increase after the Reserve Bank of India increased the repo and reserve repo rates by 50 basis points last week. Standard Chartered is the second bank after ICICI Bank to raise home loan rates.

Mr Sriram Kalyanaraman, Head, Mortgages, Standard Chartered Bank, said the bank's decision to increase rates was based on both cost of funds and the RBI's rate hike. The rate hike is not likely to cause a slowdown in loan growth though the pace of growth may slow down, he added.

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