HDFC has raised the key lending rate for home loans six times since May this year, with the previous hike being announced on August 1.
Mortgage financier Housing Development and Finance Corporation (HDFC) has announced a quarter of a percentage hike in the retail prime lending rate (RPLR) on housing loans.
The benchmark lending rate for home loans has been raised by 25 basis points, as per a regulatory filing. The new rate will come into effect from August 9, HDFC said.
“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 9, 2022,” it informed the stock exchanges.
The announcement comes around a week after HDFC raised the RPLR by 25 bps, with effect from August 1. The key lending rate has been increased six times since May this year. It has been cumulatively hiked by 140 bps.
The increase in RPLR will result in higher EMIs paid by home loan borrowers.
HDFC, earlier in the day, also announced a hike in the marginal cost of funds based lending rate (MCLR) across all loan tenures by 5-10 bps, “with effect from today, 8th August 2022”.
Financial institutions are expected to aggressively raise their lending rates, as the Reserve Bank of India (RBI) has been increasing repo rate since May in a bid to tame the inflation. The central bank on August 5 announced a 50 bps jump in the key policy rate, while noting that “inflation still remains at uncomfortably high levels”.
The repo rate hikes over the past three months have cumulatively increased it to 5.4 percent, which is the highest since August 2019.