HDFC Raises Home Loan Rate By 25 Bps

India’s largest home loan financier HDFC have raised home loan rates. The home loan financing company has raised the benchmark lending rate by 25 bps. 1 bps is one-hundredth of a percentage point.
This rate hike comes ahead of the August MPC outcome due on August 5, 2022 when it is estimated that a 35 bps rate hike shall be made to counter inflationary pressure.
In the statement, the lender 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 (bps), with effect from August 1, 2022.
Pertinently, this is the 5th hike in 2 months by the lender. Since May, the lender has raised rate by a total of 115 bps.
With this there shall be rate hike for both the lender’s existing as well as new customer base.