HDFC home loan instalments increase after RBI repo rate hike

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Housing Development Finance Corporation (HDFC) has announced a hike in the Retail Prime Lending Rate by 30 basis points on home loans from May 9. The hike will be applicable to existing as well as new borrowers.

HDFC home loan instalments increase after RBI repo rate hike
Come Monday, borrowers of HDFC will have to pay higher equated monthly instalments (EMIs) for their home loans.
Three days after the Reserve Bank of India increased repo rates by 40 basis points, mortgage lender Housing Development Finance Corporation (HDFC) has announced a hike in the Retail Prime Lending Rate by 30 basis points on home loans.
The hike, which will come into effect from May 9, will be applicable to existing as well as new borrowers.
“HDFC increases its Retail Prime Lending Rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 30 basis points with effect from May 9, 2022”, HDFC said in a statement.
Interest rates will now be in the range of 7-7.45 percent. For those with a credit score of over 750, the interest rate would be 7 percent as against 6.7 percent earlier.
Home loan amountInterest rate for womenInterest rate for others
Up to Rs 30 lakh7.05%7.1%
Rs 30 lakh to Rs 75 lakh7.3%7.35%
Rs 75 lakh and above7.4%7.45%
Earlier, HDFC increased its benchmark lending rate by 5 basis points for existing borrowers with effect from May 1.

HDFC joins a number of lenders that have recently raised interest rates, including state-run Punjab National Bank, ICICI Bank and Bank of Baroda.

The rate hikes come on the back of a surprise 40 basis points, or 0.40 percent, hike in benchmark repo rate by the Reserve Bank of India (RBI). The RBI charges banks a short-term lending rate which is called the benchmark repo rate. The apex bank has also hinted at withdrawing the accommodative monetary policy to rein in rising inflation. Prices of commodities, notably crude oil, have been on the rise since the beginning of the Russia-Ukraine crisis in February this year.
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