HDFC customers will be paying a higher interest rate for loans, as HDFC raised its Retail Prime Lending Rat (RPLR), on housing loans. Adjustable Rate Home Loans are benchmarked at 5 basis points starting today.
Only existing customers will be affected by the interest rate change. HDFC released a statement saying that there will not be any change to the interest rate for customers who are already customers.
The marginal cost of funds-based loans rates (MCLR), as set by the State Bank of India (SBI), was increased by 10 basis points (bps), across all tenures, earlier in the month.
This was the first time that SBI had raised its lending rate in over three years. It seems that the interest rate cycle has turned with large lenders such as Bank of Baroda, Axis Bank and Bank of Baroda, which also raised MCLR 5 bps for different tenures.
Lenders are also encouraged to increase loan rates because of the RBI’s toughening stance against inflation.