Three days after the Reserve Bank India (RBI) announced a 40 basis point hike in its repo rate, HDFC announced raising its Retail Prime Lending Rate (RPLR) by 30 basis points, leading to an identical hike in home loan rates for exiting customers. The hike comes into effect from May 9.
All existing customers will see an upward revision in its rates by 30 basis points. Rates for new customers will also go up because of this change.
This comes days after the lender had increased its benchmark lending rate by 5 basis points, leading to an increase in equated monthly instalments for existing borrowers. Interest rates are set to go up with the RBI now hinting at withdrawing the accommodative monetary policy to rein in inflation.
SBI had last month raised the MCLR by 10 basis points (bps) across tenures to 7.1 per cent (from 7 per cent earlier). It is now slightly lower than the 7.25 per cent at HDFC Bank, Punjab National Bank (PNB), and ICICI Bank. Bank of Baroda, Axis Bank, and Kotak Mahindra Bank raised their MCLRs by 5 bps each across tenures.
Other public sector and private banks are set to raise MCLRs in the coming days. MCLR, which RBI instituted with effect from April 1, 2016, is the lowest interest rate that a bank or lender can offer. It is applicable to fresh corporate loans and floating rate loans taken before October 2019
