<p>In a move that will sharply increase EMIs on housing and other personal loans, India's largest private sector lender HDFC Bank raises lending rate by 35 basis points across the board to over 7.5 per cent. This comes ahead of widespread anticipation that the Reserve Bank of India will raise interest rates sharply on June 8.<br /><br />The one-year loan rate, which is tied to most of the consumer loans, will now be 7.85 per cent. Similarly, the two-year loan rate will be 7.95 per cent, and the three-year rate is at 8.05 per cent.<br /><br />The new rates have been implemented from Tuesday.</p>.<p><a href="https://www.deccanherald.com/national/when-hdfc-bank-customers-became-crorepatis-overnight-1114079.html"><strong>Also read: When HDFC bank customers became 'crorepatis' overnight</strong></a><br /><br />This will increase the interest rates on all personal loans by the banks that are dependent on its marginal cost of funds.<br /><br />"It is now inevitable that home loan interest rates will finally depart from the 'sweet spot' territory that they have been occupying over the last 2 years, and enter into the yellow alert zone of lower overall affordability," Realty firm ANAROCK chairman Anuj Puri said.<br /><br />The RBI is likely to hike its key interest repo rate once again on Wednesday to tame inflation. According to Indranil Pan, Chief Economist at Yes Bank, the RBI may give a 35 bps increase in June, followed by 25 bps, each in August and September.<br /><br />"By this time, we expect the global growth to have softened enough to pull down commodity prices and, thus, provide some comfort to the domestic inflation cycle too. We, thus, factor in the RBI to press the pause button again after a 15 bps insurance hike in the repo rate in December and analyse the implications of its rate hike cycle of 140 bps on growth before taking any further decision," Pan said.</p>
<p>In a move that will sharply increase EMIs on housing and other personal loans, India's largest private sector lender HDFC Bank raises lending rate by 35 basis points across the board to over 7.5 per cent. This comes ahead of widespread anticipation that the Reserve Bank of India will raise interest rates sharply on June 8.<br /><br />The one-year loan rate, which is tied to most of the consumer loans, will now be 7.85 per cent. Similarly, the two-year loan rate will be 7.95 per cent, and the three-year rate is at 8.05 per cent.<br /><br />The new rates have been implemented from Tuesday.</p>.<p><a href="https://www.deccanherald.com/national/when-hdfc-bank-customers-became-crorepatis-overnight-1114079.html"><strong>Also read: When HDFC bank customers became 'crorepatis' overnight</strong></a><br /><br />This will increase the interest rates on all personal loans by the banks that are dependent on its marginal cost of funds.<br /><br />"It is now inevitable that home loan interest rates will finally depart from the 'sweet spot' territory that they have been occupying over the last 2 years, and enter into the yellow alert zone of lower overall affordability," Realty firm ANAROCK chairman Anuj Puri said.<br /><br />The RBI is likely to hike its key interest repo rate once again on Wednesday to tame inflation. According to Indranil Pan, Chief Economist at Yes Bank, the RBI may give a 35 bps increase in June, followed by 25 bps, each in August and September.<br /><br />"By this time, we expect the global growth to have softened enough to pull down commodity prices and, thus, provide some comfort to the domestic inflation cycle too. We, thus, factor in the RBI to press the pause button again after a 15 bps insurance hike in the repo rate in December and analyse the implications of its rate hike cycle of 140 bps on growth before taking any further decision," Pan said.</p>
