HDFC hikes interest rates, driving up home loan EMIs
There have been hikes in lending rates by HDFC, Punjab National Bank (PNB), and ICICI Bank.
PNB and ICICI Bank have raised their marginal cost-based lending rates (MCLR) on housing loans, which will translate into increased EMIs for borrowers. HDFC has increased its retail prime lending rate (RPLR) on housing loans, while PNB has increased its retail prime lending rate (RPLR).
In May, the Reserve Bank hiked the repo rate — and thus the bank’s short-term lending rate — by 0.40 per cent to 4.40 per cent, reflecting an off-cycle rate increase.
HDFC increased its Retail Prime Lending Rate (RPLR) on housing loans by five basis points on Wednesday. The revision will be effective today.
A company statement said HDFC is increasing its Retail Prime Lending Rate (RPLR) on Housing loans, against which its Adjustable Rate Home Loans (ARHL) are based, by 5 basis points.
HDFC has raised its RPLR for the third time in the past one month. In May, it raised rates twice for a total of 35 basis points.
The new rates will go into effect on June 1, according to a regulatory filing from PNB. The new rates are 15 basis points higher or 0.15 percent across all tenures.
The one-year MCLR rate has been increased from 7.25 to 7.40 percent with the revision. Most of the loans are based on this rate. MCLRs overnight, one-month and three-month increased by 15 basis points to 6.75 percent, 6.80 percent, and 6.90 percent, respectively, while six-month MCLRs increased to 7.10 percent. Meanwhile, the three-year MCLR increased by 0.15 percent to 7.70 percent.
In addition, ICICI Bank today also raised the marginal cost of funds-based lending rate on some tenor with effect from June 1, 2022, according to its website. Bank of India also raised the marginal cost of funds-based lending rate on some tenor with effect from June 1, 2022.
