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HDFC Ltd hikes retail prime lending rate by 30 bps

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Money & Banking

The move comes soon after the RBI upped the repo rate by 40 bps

Following the Reserve Bank of India’s (RBI) surprise move hiking the repo rate by 40 basis points earlier this week, mortgage financier HDFC Ltd has revised its prime lending rate for all customers. It has increased its retail prime lending rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 30 basis points (bps). This is in effect from May 9, 2022, HDFC said on Saturday.

For borrowers with a credit score of more than 750, the new rate will be 7 per cent. Loans for other categories and customers will have rates in the range of 7.05 per cent to 7.45 per cent.

ARHL is a loan with a variable or floating interest rate. HDFC follows a three-month cycle for repricing its loans to existing customers. So the loans will be repriced based on the date of the first disbursement of each customer.

Prior to this, on May 1, HDFC had hiked RPLR, on which its ARHL is benchmarked, by five basis points for existing customers.

Other lenders

Meanwhile, Canara Bank also has revised its interest rates on loans and advances across all tenors, with effect from Saturday. The bank hiked MCLR-linked tenors by 10 bps and repo-linked lending rate by 40 bps.

Punjab National Bank, too, increased interest rates on term deposits in selected buckets upto 60 bps with effect from Saturday. “The new FD rates are applicable on deposits up to ₹10 crore,” it said in a statement.

Published on May 07, 2022

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