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Mortgage financier HDFC Ltd on Sunday revised its Retail Prime Lending Rate (RPLR), on which its Adjustable Rate Home Loans (ARHL) are benchmarked by five basis points.
The increased rates are for existing customers and come into effect from Sunday.
However, the rates will not change for new customers and will remain the same, starting at 6.7 per cent.
“HDFC increases its RPLR on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points,” it said in a statement on Sunday.
Accordingly, for existing customers who are employed and self-employed persons with a credit score of more than 750, the adjustable-rate home loan now stands revised to 6.75 per cent from the earlier 6.7 per cent.
The rate for home loans up to ₹30 lakh for existing women borrowers is increased to 6.8 per cent and for other existing borrowers to 6.85 per cent. Loans above Rs 30 lakh to Rs 75 lakh will have a rate of 7.05 per cent for existing women customers and 7.1 per cent for other existing borrowers.
Similarly, the rate for home loans above Rs 75 lakh for existing women borrowers is hiked to 7.15 per cent and for other existing borrowers to 7.2 per cent.
An Adjustable Rate Home Loan is a loan with a variable or floating interest rate. These rates for these loans are linked to HDFC’s BenchMark Rate or RPLR.
Several banks in recent weeks have also increased the marginal cost of funds-based lending rate (MCLR) by five to 10 basis points. State Bank of India hiked MCLR across all tenors by ten basis points Bank of Baroda, Axis Bank, and Kotak Mahindra Bank raised their MCLRs by five basis points each across tenures.
With hardening inflation, analysts and bankers expect the RBI to increase rates in the coming months and the MCLR hikes are being seen as a precursor to a rising lending rate scenario.
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