Mortgage financier HDFC increased its retail prime lending rate (RPLR)

by bollywoodfever · 10/06/2022

Mortgage financier HDFC increased its retail prime lending rate (RPLR)

Mortgage financier Housing Development and Finance Corporation (HDFC) on Thursday increased its retail prime lending rate (RPLR), on which its adjustable-rate home loans are benchmarked, by 50 basis points, with effect from June 10, 2022, HDFC said in a regulatory filing.

This is the fourth time HDFC has hiked its home loan rates in a month.

Previously on June 1, it had raised the same by five basis points; on May 2, it had hiked the rate by five basis points; on May 9, the home loan rates were increased by 30 basis points.

Mortgage financier HDFC increased its retail prime lending rate (RPLR)

“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points, with effect from June 10, 2022,” the housing finance company said in a statement.

This comes after many large banks, including Kotak Mahindra Bank and ICICI Bank, raised their interest rates recently.

While Kotak Mahindra Bank has announced a rise in interest rates on savings accounts and fixed deposits following the RBI rate, ICICI Bank has increased rates on its FDs.

The ICICI Bank FD interest rate hike came into effect on June 7, and the Kotak Mahindra Bank rate hike will go into effect on June 13.

Financial institutions are on an interest rate hike spree following an increase in the repo rate by 50 basis points announced by the RBI on Wednesday.

This was the RBI’s second hike in as many months in a bid to cool persistently high inflation in the country.