The Hindu Business Line : Reliance Capital raises home loan rate by 0.5%

NEW DELHI: Taking cue from large banks like PNB, ICICI Bank and Axis Bank, Anil Ambani-led Reliance Capital also has increased its lending rates on property loans by 0.50 per cent to 14.25 per cent from August 1.

“Reliance Capital announces a 50 basis point increase in the lending rates for all its floating rate linked products - Mortgage and SME Loans,” according to a public announcement made by the firm on Monday.

However, loans taken on fixed interest rates would not be affected by the PLR hike. Only the loans taken on floating rate will be costlier. Prior to the increase, the prime lending rate of RCL stood at 13.75 per cent.

Reliance Consumer Finance, an ADAG firm, whose loan book size as on June 30 stood at Rs 8,094 crore, provides personal loans, vehicle loans (car and commercial), home loans, loan against property and SME loans.

Reliance Consumer Finance generated revenues of Rs 262 crore in the June quarter, against Rs 7 crore in the corresponding period a year ago. The rate hike comes barely a week after the Reserve Bank Bank hiking the mandatory cash deposit by banks by 0.25 per cent and and short-term lending rate to banks or repo rate by 0.50 per cent.

Following the decision, many private and public sector lenders revised PLR and deposit rates upward. Country's second largest public sector lender, Punjab National Bank, increased its prime lending rate to 14 per cent. ICICI Bank and HDFC Ltd, two of the largest housing finance providers also hiked floating home loan rates by 0.75 per cent, a move that would increase overall repayment by an estimated over 12 per cent. - PTI
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