BackHDFC raises retail prime lending rate on housing loans by 25 bps from 1 August
NBFC-giant HDFC today hiked the retail prime lending rate (RPLR) on housing loans by 25 basis points with effect from Monday
PremiumMortgage financier Housing Development and Finance Corporation (HDFC) on Saturday increased its retail prime lending rate (RPLR), on which its adjustable-rate home loans are benchmarked, by 25 basis points, with effect from 1 August, 2022, HDFC said in a stock exchange filing.
"HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 25 basis points, with effect from August 1, 2022," the mortgage lender said.
Previously on 9 June, the country's largest housing finance company increased the RPLR by 50 basis points, on 1 June, it had raised the same by 5 basis points, on 2 May, it had hiked the rate by 5 basis points and on 9 May, the home loan rates were increased by 30 basis points.
The latest HDFC Retail Prime Lending Rate hike will result in an increase of home loan EMIs for borrowers.
This comes days ahead of the scheduled Reserve Bank of India (RBI) monetary policy committee (MPC) meeting, where the central bank is again expected to hike rates to tame rising inflation across the country.
The RBI's rate setting panel is expected to hike the key repo rate by 0.35-0.50% at the next week's review meeting.
The MPC has hiked rates in two consecutive moves in May and June by a cumulative 0.90%, taking the repo rate at which it lends to the system to 4.90%, in a bid to contain inflation.
A majority of developed world central banks like the US Federal Reserve, which hiked rates by 0.75% and the European Central Bank have also adopted a frontloading strategy because it ups possibilities of a soft landing for the economy.
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