HDFC raises mortgage rates for existing customers by 5 basis points effective May 1
Mortgage financier Housing Development and Finance Corporation (HDFC) on Sunday increased its retail prime rate (RPLR) by 5 basis points for existing customers, with an impact from May 1, 2022. This comes after many major banks including the State Bank of India (SBI) have increased their marginal Funds Based Lending Rate (MCLR) charge by 5 to 10 basis points. Variable rate home loans or HDFC variable rate loans are indexed to the RPLR. Subsequently, any adjustment of the RPLR results in a modification of the applicable interest rates. The MCLR is a benchmark interest rate, which is the base rate at which banks are allowed to lend. Most credits are tied to the one-year MCLR.
For loans up to Rs 30 lakh, new customers would be charged an interest rate of 6.80% and for loans between Rs 30 and 75 lakh, the interest will continue to be 7.05 %, and loans above Rs 75 lakh will have an interest rate of 7.15 percent. For customers in all segments, the interest rate is 5 basis points lower.
For new customers, however, HDFC’s adjustable rate home loans for customers with a credit score above 750 will continue to be 6.70%.
Last month, SBI increased its MCLR by 10 basis points, effective April 15, across all durations (100 basis points = 1 percentage point). The one-year MCLR was revised to 7.1%, while the two- and three-year MCLRs were increased to 7.3% and 7.4%, respectively.
The increase in lending rates comes after the Reserve Bank of India’s hawkish stance at the recently concluded monetary policy meeting last month, when it focused on tackling inflation rather than curbing inflation. growth support.
In addition, Axis Bank, the third largest private sector lender in the country, and Kotak Mahindra Bank increased their MCLR by 5 basis points while Kotak Mahindra Bank increased their one-year MCLR by 5 basis points to 7.4%, from April 16. Public sector lender Bank of Baroda also raised its MCLR by 5 basis points, effective April 12.
Due to the ultra-loose monetary policy stance and excess liquidity in the system over the past two years, interest rates are at historic lows with many lenders offering mortgages as well. lower than 6.5%.
Summary of news:
- HDFC raises mortgage rates for existing customers by 5 basis points effective May 1
- Check out all the news and articles from the latest business news updates.