HDFC will increase its retail prime lending rate for home loans by 25 basis points as of August 1
HDFC, a major NBFC, today increased the retail prime lending rate (RPLR) for mortgage loans by 25 basis points, effective as of Monday.
In a stock exchange filing, mortgage lender Housing Development and Finance Corporation (HDFC) announced that it has upped its retail prime lending rate (RPLR), which serves as the benchmark for its adjustable-rate mortgages, by 25 basis points on Saturday.
“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 25 basis points, with effect from August 1, 2022,” the mortgage lender said.
The RPLR had previously been raised by 50 basis points on June 9 by the largest housing financing company in the nation, and by 5 basis points on June 1, 5 basis points on May 2, and 30 basis points on May 9 for house loan rates.
Home loan EMIs for borrowers will rise as a result of the most recent increase in the HDFC Retail Prime Lending Rate.
This occurs days before the Reserve Bank of India’s (RBI) scheduled monetary policy committee (MPC) meeting, at which the central bank is once again anticipated to raise rates in an effort to contain the nation’s increasing inflation.
At the review meeting the following week, the RBI’s rate-setting committee is anticipated to increase the benchmark repo rate by 0.35 to 0.50 percent.
In an effort to control inflation, the MPC raised rates twice in quick succession in May and June by a total of 0.90 percent, bringing the repo rate at which it loans to the system to 4.90 percent.
A frontloading strategy has been embraced by the majority of industrialised world central banks, including the US Federal Reserve, which increased rates by 0.75 percent, and the European Central Bank because it increases the likelihood of an economic soft landing.