HDFC hikes interest rate on home loans
Posted on: 02/Oct/2018 11:58:58 AM
On its mortgage lending market HDFC increases the interest rate of housing loans. HDFC having the pride of India’s largest housing finance company recently announced the updated EMIs for home loan sector. The interest hike was applied for the loans from October 1, 2018.
HDFC’s decision to increase the interest rate comes in correlation with Reserve Bank of India (RBI) conducting the fourth bi-monthly monetary policy review. Retail Prime Lending Rate (RPLR) has been increased by HDFC with the adjustable rates of the home loans being benchmarked to 10 basis points.
In the month of August HDFC increased the interest rates of home loans by 20 basis points after RBI`s Monetary Policy Committee (MPC). Several other banks also increased the marginal cost of lending rates for home loans. RBI likely to increase the repo rate in its upcoming monetary review by 25 basis points. The increase of the rates is viewed as the result of higher crude priced and rupee fluctuation. The monetary review meeting will be held for three days from October 3, 2018. Repo rate is the amount at which RBI lends money to banks against governmental security.
