The mortgage lender HDFC has increased its retail prime lending rate (RPLR) by 10 basis points as on 31 December 2018. This will make home loans costlier for new borrowers. The new rates range from 8.90 to 9.15 percent and will be effective from today, 1 January 2019. RPLR is the benchmark that HDFC uses to set its adjustable home loan interest rates.
As cost of funds increase, the new rate will encourage other lenders to increase their interest rates as well.
Customers of HDFC can now be able to borrow home loans up to Rs 30 lakh at 8.95 percent (8.90 percent for women) and loans above Rs 30 lakh but less than Rs 75 lakh at 9.10 percent (9.05 percent for women).
Housing Development Finance Corporation (HDFC) Ltd is a major lender in the housing finance sector in India providing loans to individuals and corporates for purchase or construction of residential properties. It is also into the business of selling general and life insurance along with mutual funds.