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HomeBusinessHDFC hikes retail prime lending rates by 35 bps from 20 Dec

HDFC hikes retail prime lending rates by 35 bps from 20 Dec


Housing Development Finance Corporation Ltd (HDFC) has revised its Retail Prime Lending Rate (RPLR) on housing loans. The company has stated in a statement that as of December 20, 2022, it would increase its Retail Prime Lending Rate (RPLR) on housing loans by 35 basis points, on which its Adjustable Rate Home Loans (ARHL) are benchmarked.

“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 35 basis points, with effect from December 20, 2022,” said the company in a press release statement. 

HDFC has said on its website that “An Adjustable Rate Home Loan is also known as a floating or a variable rate loan. The interest rate in an ARHL is linked to HDFC’s benchmark rate i.e. Retail Prime Lending Rate (RPLR). Any movement in HDFC’s RPLR may effectuate a change in the applicable interest rates.”

The repo rate was increased by the Reserve Bank of India (RBI) by 0.35%, from 5.9% to 6.25%, during its monetary policy meeting on December 7, 2022. This is the fifth time since May of this year that the repo rate has lifted. The RBI has increased the benchmark rate by a total of 2.25% since May as a consequence. Analysts projected that EMIs would increase as a result, and today’s statement by HDFC came following the RBI’s policy repo rate decision in December.

“HDFC Limited offers low home loan interest rates starting from 8.20*% p.a. This rate of interest is applicable to Home Loans, Balance Transfer Loans, House Renovation and Home Extensions Loans. 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 first two years of the entire loan tenure) after which it converts into an adjustable-rate loan,” said the company on its website. 

“The maximum period of repayment of a loan shall be up to 30 years for the Telescopic Repayment Option under the Adjustable Rate Home Loan. For all other Home Loan products, the maximum repayment period shall be up to 20 years,” HDFC Ltd has said on its website.

Generally, home loan interest rates may vary based on the loan amount, profession (salaried or self-employed), and other factors including your credit score. Borrowers may apply for a house loan with HDFC and receive instant home loan EMI quotes. The firm provides a longer home loan term of up to 30 years with affordable EMIs starting at 748 per lakh. Processing fees for home loans are typically in the range of 0.5% of the loan amount at HDFC Ltd.

 

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