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HDFC Hikes Retail Prime Lending Rate, New Rates Effective From Today; Home Loan To Get Costly

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Housing Development and Finance Corporation (HDFC), a provider of housing financing, announced on Monday a 25 bps hike in the retail prime lending rate (RPLR) on housing loans.

 

The revised new interest rates will be effect from Tuesday, August 9, 2022.

HDFC Hikes Retail Prime Lending Rate, New Rates Effective From Today

HDFC in its regulatory filing on August 8, stated, "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, with effect from August 9, 2022."

This development came post the monetary policy committee of the Reserve Bank of India's move to raise the repo rate by 50 basis points to 5.40 per cent in order to contain the persistently high inflation.

The RBI MPC raised the repo rate by 50 basis points to 5.4% last week, its third consecutive rate increase since May, in response to pressure on inflation that has grown since conflict broke out in Europe in February.

Since the RBI has been raising the repo rate since May in an effort to contain inflation, banks and NBFCs are anticipated to sharply increase their lending rates.

 

What does an RPLR hike mean?

RPLR or retail prime lending rate is the rate at which home finance companies offer loans to their customers based on their creditworthiness is known as the RPLR. RPLR is used as a comparison point for interest rates when lenders grant loans to clients. As a result, home loan borrowers will pay higher EMIs as RPLR rises.

Story first published: Tuesday, August 9, 2022, 18:07 [IST]
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