HDFC, the largest housing finance organisation in the country, on Monday raised its retail prime lending rate by 10 basis points. The new interest rates are effective from October 1 2018 and could result in loan repayment becoming costlier.
The home loans offered by HDFC are benchmarked against the retail prime lending rate (RPLR).
This is the second rate hike by HDFC since August this year, when it had hiked its home loan interest rates by 20 basis points.
Following this hike in interest rates, HDFC loan rates range between 8.80 per cent and 9.05 per cent.
A number of banks have increased their interest rates over the last few weeks, with SBI and ICICI Bank recently hiking their MCLR by 20 bps and 15 bps respectively.
According to a report by Business Today, the RBI could hike the repo rate by 25 bps when it meets to discuss the monetary policy review, which starts today.
The repo rate is the interest rate which the RBI charges commercial banks to lend money to them.
Sources: LiveMint, Business Today, Economic Times.