HDFC Raises Home Loan Interest Rates; Know how much more you have to pay
Mortgage finance company Housing Development and Finance Corporation (HDFC) on Saturday May 7 raised its retail prime rate (RPLR), on which its adjustable rate home loans (ARHL) are benchmarked. The new rates, a 30 basis point increase, will be effective from May 9, Monday, HFDC said. The lender’s decision closely follows the decision of the Reserve Bank of India (RBI) to raise interest rates by 40 basis points or 0.40% following rising inflation in India.
HDFC is increasing its Retail Prime Lending Rate on Housing Loans, on which its adjustable rate housing loans are benchmarked by 30 basis points from 09 May 2022. pic.twitter.com/cOoBoIM1Q8— ANI (@ANI) May 7, 2022
The lender had recently hiked the same rates by 5 basis points, days before the repo rate hike amid inflationary concerns. After the change, borrowers with a credit score above 750 will get loans at 7% on adjustable rate home loans, up from 6.70% previously. This will apply to female borrowers. For loans from other categories and clients, the rates will vary from 7.05% to 7.45%.
ARHL is a floating or variable interest rate loan. HDFC follows a three-month cycle to adjust its lending rates to existing borrowers. Therefore, the lender will reprice loans based on the date of first disbursement for different clients.
Here are the revised adjustable rate home loans for a credit score of Rs 750 Plus (effective from May 9):
i) For loans up to Rs 30 lakhs, female customers will be charged an interest rate of 7%, down from 6.70% previously, an increase of 30 basis points. For other customers, interest rates were raised by 30 basis points to 7.05% against 6.75% previously.
ii) For loans above Rs 30 lakh and below Rs 75 lakh, female borrowers will be charged interest at the rate of 7.30% as opposed to the previous 7%. This is also a 30 basis point increase. For other customers, interest rates were raised by 30 basis points to 7.35% against 7.05% previously.
iii) In case of loans above Rs 75 lakh, borrowers who are women will have to pay an interest rate of 7.40%, down from 7.10% previously, an increase of 30 basis points. For other customers, interest rates were raised by 30 basis points to 7.45% against 7.15% previously.
Following the RBI’s mid-cycle rate hike on May 4, several lenders, including ICICI Bank and Bank of Baroda, raised their external benchmark lending rates. More banks are expected to join in the hike in their lending rates.
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