rate rises ahead reserve Bank of IndiaThe Monetary Policy Committee (MPC) will meet later next week. It is widely expected that MPC To control inflation, interest rates will be raised.
“HDFC increased its retail prime lending rate (RPLR) on housing loans, at which its Adjustable Rate Home Loan (ARHL) is benchmarked by 25 basis points (bps) with effect from August 1, 2022,” the housing finance company said in a statement.
This is the fifth hike by HDFC in two months. All rates have been increased by 115 basis points since May this year.
The revised rates for new borrowers range between 7.80 per cent to 8.30 per cent, depending on the credit and loan amount. The current range is 7.55 per cent to 8.05 per cent.
The rates will be increased by 25 basis points or (0.25 per cent) for existing customers.
HDFC follows a 3-month cycle to re-evaluate its loans to existing customers. Hence, the loans will be revised with enhanced lending rate based on the date of first disbursement of each customer.
Financial institutions are increasing interest rates after the repo rate hike announced by RBI in May and June by 40 basis points and 50 basis points respectively.