Sundaram BNP Paribas hikes PLR by 0.25%

Rate of interest on all variable rate loans of all existing customers will increase from Sept 1

Sundaram BNP Paribas Home Finance has increased its prime lending rates by 0.25% from next month.

Consequently, the rate of interest on all variable rate loans of all existing customers would increase by 0.25% from September 1, a company statement said.

"The increase in PLR rate has been driven by the tight liquidity conditions in the market and an increase in borrowing costs of the company," Sundaram BNP Paribas Home Finance Managing Director Srinivas Acharya said.

Sundaram BNP Paribas Home Finance Ltd is a 50.1% and 49.9% joint venture between Sundaram Finance Ltd and BNP Paribas.

Sundaram Home Finance has over 41,000 retail customers and has over 100 branches, with a portfolio size of about Rs 6,000 crore, the statement added.