RBI IMPACT: 50% home loans turn expensive

RBI IMPACT: 50% home loans turn expensive

BS Reporter / Mumbai April 2, 2007

Over half of the outstanding home loans have become expensive with Housing Development Finance Corporation (HDFC) following ICICI Bank by raising lending rates today.

HDFC raised interest rates by 75 basis points for new borrowers and by 50 basis points for existing customers. HDFC will now charge 11.25% for floating rate loans and 13.25% for fixed rate loans. These levels on fixed rate loans were last seen in 1999.

ICICI Bank, the largest private sector bank, had raised its consumer loan rates, including home loans by 100 basis points, for both existing as well as new borrowers last Saturday. The interest rate on ICICI