HDFC raises interest rates to 50 points
Posted on: 03/Aug/2011 6:48:25 AM
The existing home loan customers of mortgage major Housing Development Finance Company (HDFC) should prepare themselves to pay higher EMIs. Citing the rising interest rate scenario in the economy, the company on Tuesday said it has increased the rate of interest on floating rate home loans by 50 basis points, i.e., half percent.
The hike comes a week after the RBI unexpectedly raised key policy rates by as much as 50 basis points.
The last time HDFC had raised rates was in May, but had kept its rates unchanged in June when the RBI had raised the key rates by 25 basis points.
As a result of this hike in rates by HDFC, a home loan customer who has taken a 20-year loan will have to pay roughly about Rs 34 higher as EMI for every Rs 1 lakh of loan and 15-year loan, the per lakh increase in EMI will be Rs 32 and Rs 30 for a 10-year loan and Rs 28 for a 5-year loan.
