Housing Development and Finance Corp (HDFC), a leading housing finance company has increased its lending rate as per the announcement made a day after the RBI hiked the key policy rate to 6.5%, with an increase of 25 basis points due to inflationary pressure.
The NBFC company raise loans by 20 basis points or 0.2 per cent points. 1 basis point is one-hundredth of a percentage point. In a regulatory the country's leading mortgage lending company said, "HDFC has increased its Retail Prime Lending Rate (RPLR), on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 20 basis points, with effect from August 1, 2018".
There will be a rebate available to women home loan borrowers; loans up to Rs. 30 lakh will cost 8.7% interest rate whereas higher loan amount of over Rs. 30 lakh will be taken at 8.8%. Other customers will be able to avail loan from the institution at a higher rate by 5 bps.