The Hindu Business Line : HDFC hikes retail lending rates by 50 bps

Mumbai April 2 Home loan borrowers will be scarred with Housing Development Finance Corporation raising its retail prime lending rates by 50 basis points, on which its adjustable rate home loans (ARHL) are benchmarked, effective April 1.

For all new home loan customers, the ARHL (floating) loans will now be priced at 11.25 per cent per annum while the fixed rates will be at 13.25 per cent per annum.

"The increase in retail prime lending rate will affect existing borrowers whose loans come up for re-pricing on or after April 1. HDFC follows a three-month reset cycle for its floating rate loans and hence the change in retail prime lending rate will impact the existing customers only over the next three-month period based on their respective date of disbursement," said a press release by HDFC.

The housing finance company clarifies that this is in line with the rates of interest in the economy, which have hardened due to rising inflation. Also bond prices have moved up by about 200 basis points in the past few months raising borrowing costs of triple-A companies.

HDFC Bank has also hiked its prime lending rate by one percentage point to 15 per cent per annum against 14 per cent earlier. The revised rates will be effective April 3.

HDFC has also increased its deposit rates by 0.75 per cent across all maturities. HDFC's premium and premium plus deposit schemes are being extended till April 30.

ICICI Bank hiked its benchmark advance rate by one percentage point to 15.75 per cent and floating reference rate to 12.75 per cent, on Saturday.