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Business News/ Money / Personal Finance/  Indiabulls Housing Finance hikes home loan interest rate by 25 bps, EMIs to go up

Indiabulls Housing Finance has increased its lending rates on housing and MSMEs loans. The hike has been made by 25 basis points on these term loans and tracks other leading home loan lenders and banks recent revisions. However, the revised rates will come into effect from August 1 for new customers, while the rates will be applicable from August 5 for existing customers. The announcement comes ahead of RBI's monetary policy which is scheduled for later this week.

In its regulatory filing on Sunday, Indiabulls said, "revises its reference rates on Housing Loans and MSME Loans by 25 basis points in line with other leading Home Loan lenders and banks recent revisions."

It added, "The new rates will be applicable for new customers from 1st August onwards, and for existing borrowers from 5th August onwards."

As per the Indiabulls Housing website, currently, the interest rate on home loans here starts from 7.6% onwards. The final rate of Interest will depend upon Profile, Loan amount, tenor, property type, and other risk parameters.

With the hike in housing and MSME loans, EMIs will go up once the new rates take force.

Indiabulls Housing Finance (IBHFL) is India’s third largest housing finance company, regulated by the National Housing Bank (NHB). IBHFL offers quick, convenient, and competitively priced home loans in the affordable housing segment.

On Saturday, NBFC-giant HDFC increased 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.

RBI and other MPC members will meet from August 3 to discuss the monetary policy and the result will be announced on Friday (August 5). Due to multi-year high inflation, RBI is expected to hike the repo rate yet again.

The central bank increased its policy repo rate by 40% basis points in May followed by another hike of 50 basis points in June. The policy repo rate currently stands at 4.90%. Notably, any change in RBI's repo rate will have an impact on the lending and deposit rates of the bank.

In the last two policies when RBI hiked the repo rate by 90 basis points, both benchmark lending rates and deposit rates have been increased by the banks and NBFCs as well.

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Updated: 31 Jul 2022, 10:45 PM IST
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