HDFC consumers will pay a higher interest rate on loans as HDFC increased its Retail Prime Lending Rate (RPLR) on housing loans on which its Adjustable Rate Home Loans (ARHL) are benchmarked by 5 basis points with effect.
The interest rate change will be effective only for existing customers. There will be no change in the interest rate for new customers, said HDFC in a release.
Earlier in the last month, the State Bank of India (SBI) raised the marginal cost of funds based lending rates (MCLR) by 10 basis points (bps) across tenures.
This was the first instance of a lending rate hike by SBI in more than three years. The interest rate cycle seems to have turned with other large lenders, including Bank of Baroda and Axis Bank, also hiking MCLR by 5 bps each across tenures.
Moreover, the RBI’s hardening stance on inflation is giving lenders the confidence to raise loan rates in anticipation of repo rate hikes.