Home loan borrowers, Alert! HDFC hikes lending rate on housing loans, check by how much EMIs will increase

New Delhi: Following the Reserve Bank of India’s (RBI) move to hike the repo rates by 50 basis points in a bid to tame the rising inflation, Housing Development Finance Corporation (HDFC) has increased its lending rate on housing loans. The private sector lender has increased the Retail Prime Lending Rate (RPLR) on housing loans by 50 basis points or 0.50%. For the unversed, the Adjustable Rate Home Loans are benchmarked on RPLR. HDFC said on Thursday, June 9, that the new rate will come into effect from June 10. 

With the latest revision, HDFC’s home loan rates now start from 7.55%. Previously, HDFC increased the retail prime lending rate (RPLR) on housing loans by 5 basis points or 0.05%. 

Besides HDFC, several other public and private sector lenders have increased the lending rates on home loans. For instance, Punjab National Bank (PNB) has increased the lending rates on home loans by 15 basis points or 0.15% while the public sector lender has increased the one-year MCLR rate to 7.40% from 7.25%.

On the other hand, State Bank of India increased the home loan lending rates by 40 basis points or 0.40% to 7.05%. With the latest revision, the Repo-Linked Lending Rate (RLLR) has been revised to 6.65%+CRP. Going ahead, many others are expected to hike the lending rates. 

However, in what could be good news for borrowers, the RBI has raised the loan amount that cooperative banks can lend to an individual by 100% in view of the surge in housing prices. (ALSO READ: Wipro CEO gets the highest salary in IT sector: Check how much Infosys, TCS, HCL and Tech Mahindra CEOs earn)

RBI Governor Shaktikanta Das, who made the announcement along with the other measures in the bi-monthly policy review, said that a detailed circular on the new rule for housing loans will be issued separately. (ALSO READ: Fitch improves India's rating outlook to stable on 'solid' medium-term growth prospects)