HDFC increases home loan interest rates

Housing Development Finance Corporation or HDFC Ltd has announced that with effect from May 09, 2022, it has increased its Retail Prime Lending Rate (RPLR) on Housing Loans by 30 basis points. This hike is applicable for all borrowers, existing as well as new. This hike will now mean that home loan borrowers of HDFC will see a rise in the EMIs.

“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing Loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked by 30 basis points with effect from May 09, 2022,” the company said in a statement on Saturday.

According to the HDFC statement, interest rates from May 9 will be the range of 7-7.45%.

Source: HDFC statement

Earlier, HDFC had raised its RPLR by 5 basis points for existing borrowers with effect from May 1, 2022.

Interest rates have begun to rise, with the Reserve Bank of India signalling “less supportive” monetary policy as surplus money infused during the Covid-19 outbreak is gradually withdrawn. Following the Russia-Ukraine crisis, global commodity prices, notably crude oil, are projected to soar, resulting in significant inflation.

Many banks have all increased home loan interest rates over the last one month.

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