Home loan EMIs set to increase as HDFC hikes housing loan interest rate by 25 bps
HDFC RPLR 2023: HDFC in a statement said that it has increased its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked.
HDFC RPLR 2023: Home Development Finance Corporation (HDFC) has hiked its home loan interest rate by 25 bps, with effective from March 1, according to the mortgage lender's website. The hike in the interest rate on housing loans will make both existing and new loans expensive.
HDFC in a statement said that it has increased its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked. The RPLR currently stands at 18.30 per cent, according its website.
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The home loan interest rates are linked to the benchmark rate and vary depending upon the tenor. The lender previously hiked the RPLR by 35 bps in December 2022.
For salaried individuals, HDFC is providing a special adjustable rate on home loans from 8.45 per cent to 8.95 per cent per annum and the standard home loan rates are in the range of 8.95 per cent to 9.85 per cent, depending on the nature of borrower and quantum of loan.
For home loans up to Rs 30 lakh, the interest rate currently stands between 8.95 per cent to 9.45 per cent for women, while the rate for others on the same loan amount stands at 9 per cent to 9.5 per cent. For loans between Rs 30 lakh and Rs 75 lakh, HDFC is charging interest rate of 9.2 per cent to 9.7 per cent while for home loans above Rs 75 lakh the lender is levying rate of 9.3 per cent to 9.8 per cent.
Retail Prime Lending Rate (RPLR) hike impact
RPLR is the benmark against which private sector lenders price their loans. It is derived from the average cost of funds from housing finance companies. An increase in RPLR increases the interest burden on borrowers and consequently leads to rise in equated monthly installments (EMI).
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