HDFC hikes home loan rates for existing customers by 5 bps effective May 1

This comes after many large banks, including SBI increased their marginal cost of funds-based lending rate by 5-10 bps

Mortgage financier Housing Development and Finance Corporation (HDFC) on Sunday increased its retail prime lending rate (RPLR) by 5 basis points for existing customers, with effect from May 1, 2022. This comes after many large banks, including State Bank of India (SBI) increased their marginal cost of funds-based lending rate (MCLR) by 5 – 10 basis points.

HDFC's adjustable-rate home loans or floating rate loans are benchmarked to the RPLR. Hence, any change in RPLR effectuates a change in the applicable interest rates.

For new customers, however, HDFC’s adjustable-rate home loans for customers with a credit score of above 750