Mortgage lender Ltd. announces another hike in its benchmark lending rate 25 basis points to make home loan costlier for new and existing borrowers. This hike has come into effect from August 9.

The current hike is the second one for this month as the housing loan major raised the lending rate by 25 basis points on August 1.

“HDFC enhances its retail prime lending rate (RPLR) on housing loans on which its Adjustable Rate Home Loan (ARHL) is benchmarked by 25 basis points with effect from August 9, 2022,” the largest housing finance company said in a statement.

came after the step reserve Bank of IndiaIn its latest monetary policy announcement, it hiked key interest rates by 50 basis points to 5.40% in its effort to pacify rising prices.

This is the sixth increase by HDFC in three months. There has been an overall increase of 140 basis points since May this year.

For existing customers, the rates will increase by 25 basis points or (0.25 per cent). HDFC follows a three-month cycle to re-evaluate its loans to existing customers. Hence the loans will be revised to suit the enhanced lending rate based on the date of first disbursement of each customer.

Financial institutions have been increasing interest rates since May in line with RBI’s monetary tightening.