mortgage lender HDFC Ltd The Reserve Bank on Friday raised its lending rate by 50 basis points, hours after the Reserve Bank raised the benchmark interest rate to check inflation. This move will lead to an increase in the EMI for the housing loan by the firm.

“HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans, benchmarking its Adjustable Rate Home Loans (ARHL) by 50 basis points,” the country’s largest housing finance company said. a statement.

This is the seventh rate hike HDFC in the last five months.

Other financial institutions and banks are also expected to follow suit after the RBI hiked the key interest rate by 50 basis points on Friday, the fourth consecutive hike since May.

The Monetary Policy Committee (MPC), comprising three members from the RBI and three external experts, raised the prime lending rate or repo rate to 5.90 per cent – the highest since April 2019 – voted by five out of six members. in favor of growth.

Since the first unscheduled mid-meeting hike in May, the cumulative interest rate hike is now 190 basis points and reflects similarly aggressive monetary tightening in major economies around the world to contain runaway inflation by easing demand .