This is the seventh rate increase by HDFC in the past five months.
New Delhi:
Mortgage lender HDFC Ltd raised its lending rate by 50 basis points on Friday after the Reserve Bank raised its benchmark rate to tame inflation.
The move would increase EMIs for home loans by the company.
“HDFC is raising its Retail Prime Lending Rate (RPLR) on housing loans, on which its adjustable-rate home loans (ARHL) are benchmarked, by 50 basis points, effective Oct. 1, 2022,” the country’s largest home financing company said in a statement.
This is the seventh rate increase by HDFC in the past five months.
Other financial institutions and banks are also expected to follow suit after the RBI raised key interest rates by 50 basis points on Friday, the fourth rise in a row since May.
The Monetary Policy Committee (MPC), made up of three members of the RBI and three outside experts, raised the key lending rate or the repo rate to 5.90 percent — the highest since April 2019 — with five of the six members voting in favor of the walk.
Since the first unplanned mid-meeting hike in May, the cumulative rise in interest rates now stands at 190 basis points, reflecting similar aggressive monetary tightening in major economies around the world to contain runaway inflation by boosting demand. temper.
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