HDFC Hikes Lending Rate By 5 Basis Points

HDFC hikes the lending rate by 5 basis points, and the EMI burden will increase.

HDFC Ltd on Sunday increased its benchmark lending rate by 5 basis points. This is a move that will increase the EMI for existing borrowers.

This rate hike by HDFC Ltd comes after other lenders including the State Bank of India and Bank of Baroda.

HDFC hikes the lending rate: Statement of HDFC Ltd.

HDFC has increased its Retail Prime Lending Rate (RPLR) on housing loans by 0.05 percent with effect from May 1, 2022, the company said in a statement.

However, there will be no increase in rates for new customers. The interest rate for new customers will range from 6.70 to 7.15 percent depending on the loan amount and tenure.

Earlier SBI had increased lending rates.

Earlier last month, SBI and other lenders raised benchmark lending rates for existing customers, leading to an increase in EMIs.

Interest rates are expected to harden in the coming months as geopolitical tensions heightened global inflationary fears. It also has an effect on the Russian invasion of Ukraine.

Central Reserve Bank did not increase the repo rate.

Keeping the key repo rate or short-term lending rates for banks unchanged, the central reserve bank said last month that it will take steps to ensure that inflation remains within the target going forward.

Let us tell you that retail inflation rose to around 7% in March, while the central bank had kept an upper limit of 6%.

Central Reserve Bank may increase key rates.

In such a situation, it is believed that bank loans can be expensive in June because RBI can increase the repo rate. This thing has come out in a poll of the leading news agency.

According to this, there will be a sharp increase in the repo rate this time as the rise in inflation is putting pressure on the central bank to act fast.