HDFC has decided to increase its hiking home loans rates by 50 basis points (half a per cent) across all repayment tenures including on floating rates. |
The upward revision was necessitated by RBI increasing deposit rates by 25 to 50 basis points. With the increase of repo and reverse repo rates by 25 basis points by RBI in its third-quarter review of the monetary policy, banks are all now poised to increase retail lending rates.
The housing finance company has hiked its prime lending rate from 10.75 per cent to 11.25 per cent. This follows a similar upward revision in both fixed and floating home loans.
While fixed rate has been changed from 8.75 per cent to 9.25 per cent, the floating rate has been changed from 7.50 per cent to 8.
The interest rates on a Rs10-lakh plus loan for a tenure of 15 years will go up from 7.5 per cent to 8 per cent in the case of floating rate and from 8.75 per cent to 9.25 per cent for fixed rates. The new rates will be applicable for fresh loans. Rates for old floating loans will also rise. official.
HDFC's move sets the trend for other housing finance companies to increase their home loan rates.
ICICI assessing cost of funds
ICICI Bank says it will decide on whether or not to increase home loan rates, after watching the impact on cost of funds and decide subsequently whether or not to increase interest rates on home loans.
Canfin watches the market
Canfin says that considering the market trend it, too, may increase its lending rates though it may do so after the close of the current financial year. Canfin is waiting to see how SBI and ICICI