Premium| Listen to this article |
NBFC-major HDFC on Sunday hiked its retail prime lending rate (RPLR) on which its adjustable-rate home loans are benchmarked by 5 basis points.
The new rates have come into effect from May 1.
In its exchange filing, HDFC said, "increases 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 from May 1, 2022."
HDFC offers an adjustable-rate loan also known as a floating rate loan as well as a trufixed loan in which the interest rate on the home loan remains fixed for a specific tenure (say the first two years of the entire loan tenure) after which it converts into an adjustable-rate loan, it said on the website.
However, the new hike of 5 basis points is only for HDFC's existing customers. While the revised RPLR will not effect the new customers.
For credit score 750 and above, the interest rate for the new customers will be 6.70%. For women availing home loans up to ₹30, the rate will be 6.75% and the new customers in others category will have an interest rate of 6.80% for similar value.
Meanwhile, new customers availing loans above ₹30 lakh to ₹75 lakh, the interest rate will be 7% and for others it will be 7.05%. Above ₹75 lakh housing loan, a woman customer will pay an interest rate of 7.10% and others will pay 7.15%.
HDFC hikes interest rates on home loans during the time when major banks like SBI, Bank of Baroda, Kotak Bank, and Axis Bank have already hiked their benchmark lending rates on term loans in April - indicating that the soft lending rates regime that borrowers have rejoiced since 2019 is about to end.