HDFC raises home loan rate by 75 bps

Private mortgage lender HDFC has raised its retail prime lending rate (RPLR) by 75 basis points.

For home loans up to Rs 30 lakh, the new floating rate is 9.5 per cent and for loans of Rs 30-75 lakh, it is 9.75 per cent. Loans above Rs 75 lakh will be charged 10 per cent. The new rates are effective from December 1.

As a result, the equated monthly instalment for loans already disbursed under the special home loan scheme will increase from the third year.

An HDFC official said this rise was in line with interest rates in the economy, which had hardened due to rising inflation and shrinking liquidity in the domestic market. While HDFC has raised RPLR by 75 bps since its last increase in September, overall interest rates in the system have moved up by 100 bps to 125 bps during this period.

ICICI Bank and HDFC have discontinued their teaser-rate home loan schemes.

State Bank of India, another large lender, has kept its dual rate scheme open till December 31.

SBI offers loans up to Rs 50 lakh at eight per cent for the first year. The rate increases to nine per cent for second and third years. From the fourth year, the rate is linked to the prevailing base rate.