Mortgage financing company Housing Development and Finance Corporation (HDFC) on Saturday, May 7 increased its retail prime lending rate (RPLR), at which its Adjustable Rate Home Loan (ARHL) benchmarks. The new rates, an increase of 30 basis points, will be effective from Monday, May 9, the HFDC has said. The move by the lender comes close on the heels reserve Bank of India(RBI) has decided to increase its interest rates by 40 basis points or 0.40 per cent in view of rising inflation in India.
HDFC has increased its retail prime lending rate on housing loans benchmarking its adjustable rate home loans by 30 basis points with effect from May 09, 2022. pic.twitter.com/cOoBoIM1Q8— ANI (@ANI) 7 May 2022
The lender had recently hiked the same rates by 5 basis points, days before the repo rate hike amid inflation concerns. After the change, borrowers with a credit score of more than 750 will get loans at 7 per cent in case of adjustable-rate home loans, from 6.70 per cent earlier. This will be applicable to women borrowers. For loans to other categories and customers, the rates will range from 7.05 per cent to 7.45 per cent.
ARHL is a loan whose interest rates are temporary or variable. HDFC goes through a three-month cycle to adjust its lending rates for existing borrowers. Therefore, the lender will re-evaluate the loans for different customers on the basis of the date of first disbursement.
Here are the revised adjustable rate home loans for credit scores above Rs 750 (effective from May 9):
i) For loans up to Rs 30 lakh, female customers will be charged an interest rate of 7 per cent as against an increase of 30 basis points from 6.70 per cent earlier. For other customers, the interest rates have been increased by 30 basis points to 7.05 per cent from the earlier rate of 6.75 per cent.
ii) For loans above Rs 30 lakh and below Rs 75 lakh, women borrowers will have to pay interest at the rate of 7.30 per cent as against 7 per cent earlier. There has also been an increase of 30 basis points. For other customers, interest rates have been increased by 30 basis points, from 7.05 per cent earlier to 7.35 per cent.
iii) In case of loans above Rs 75 lakh, borrowers who are women will have to pay an interest rate of 7.40 per cent as against 7.10 per cent earlier – in an increase of 30 basis points. For other customers, the interest rates have been increased by 30 basis points to 7.45 per cent from the earlier rate of 7.15 per cent.
Following the RBI’s mid-cyclical rate hike on May 4, several lenders including ICICI Bank and Bank of Baroda hiked their external benchmark lending rates. It is anticipated that more banks will join to increase their lending rates.
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