HDFC Hikes Lending Rate By 50 bps; Buying Home Set To Get Costlier

Friday, 30 September, following the Reserve Bank of India (RBI) monetary policy committee's (MPC) decision to raise the repo rate by 50 basis points to 5.90%, leading home loan provider Housing Development Finance Corporation Ltd. (HDFC) has announced the hike in its Retail Prime Lending Rate by 50 bps with effect from October 1, 2022.

HDFC Ltd. in its regulatory press release has said "HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from October 1, 2022."

According to the HDFC's official website:

Retail Prime Lending Rate (RPLR) is 17.95%
Retail Prime Lending Rate (RPLR) - Non Housing is 17.60%

HDFC Limited offers house loans with interest rates beginning at 8.10% p.a. Loans for new home purchases, home renovations, balance transfers, and home additions are all subject to this interest rate.

Meanwhile, following the RBI's decision on Friday to boost the benchmark interest rate, the fourth consecutive rise since May, other financial institutions and banks are also anticipated to do the same in the coming days.