After BoB, SBI, HDFC Also Increases Lending Rates; Home Loan EMIs Will Become Expensive For These Customers

As the mortgage lender HDFC Ltd raised its benchmark lending rate by 5 basis points on Sunday, the monthly EMIs of housing loans are scheduled to rise.

This rate of increase of the HDFC also happens to be in line with that of the State Bank of India and Bank of Baroda. 

HDFC Increased RPLR

“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable-Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from May 1, 2022,” said the official statement.

The release said that there is going to be no change in the lending for new borrowers. Depending on the credit and loan amount, the rates for new borrowers’ range between 6.70 per cent and 7.15 per cent.

Pushing the EMIs for the existing customers, SBI and other lenders raised benchmark lending rates last month.

In the coming months, as global inflationary fears have been stoked due to geopolitical tensions mainly due to the Russian invasion of Ukraine. This prompted the Reserve Bank earlier this month to raise the inflation target.

RBI Focuses On Withdrawal of Accomodation

In order to make sure that inflation remains within the target, the RBI said going further it will focus on withdrawal of accommodation even as it kept unchanged the key repo rate or the short-term lending rates to banks.

The RBI has been mandated to keep the retail inflation at 4 per cent with a bias of 2 per cent on either side.