New Delhi: HDFC Ltd on 31 July announced a hike of 0.75% in lending rates from 1 August for old and new floating rate customers, who would now have to pay a minimum of 11.75% interest on home loans.
“This is in line with the rates of interest in the economy, which have hardened due to rising inflation and shrinking liquidity in the domestic market,” the lender said in a statement.
The move by HDFC closely follows an up to 1% rate revision by leading PSU banker Punjab National Bank, Axis Bank and J&K Bank that made all home, corporate, personal and auto loans expensive.
India’s largest private sector lender ICICI Bank is expected to soon hike interest rates.
Retail Prime Lending Rate (RPLR) or the floating home loan rates of HDFC will be hiked by 0.75% with effect from 1 August, it said in statement issued here today.
The increase in home loan rates “will affect existing borrowers whose loans come up for re-pricing on or after August 1.”
The hike in floating home loan rates will impact the existing customers over the next three month period and fixed home loan rates will be unchanged at 14%, HDFC said.