HDFC hikes rate, 6th time in 2 months

HDFC, the country’s largest housing finance company, has increased its retail prime lending rate (PLR) on home loans by 25 basis points (100bps =1 percentage point). This is the sixth rate hike by the corporation in two months. The lender has increased its benchmark rates by 140bps this year in line with the hike in repo rates.

In a filing with the stock exchanges, the corporation said that it has increased its retail PLR by 25bps with effect from August 9. The increase in PLR would mean that current borrowers will see their rates rise. The rates for new customers is likely to be announced soon. A 25bps increase will increase the EMI on a Rs 1-crore home loan by Rs 1,539. In the banking sector, ICICI Bank, Canara Bank, Bank of Baroda and Punjab National Bank have already raised floating rates by 50bps.

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