HDFC raises lending rate by 50 bps, home loans to get dearer

The revised retail prime lending rate (RPLR) will be applicable from May 16, the bank said in a statement.

"This is in line with the increase in interest rate in the economy, which have hardened mainly due to inflation," it said.

The Reserve Bank has hiked key policy rates by 50 basis points in its annual credit policy on May 3, to curb demand and check inflation, which is hovering around 9 per cent.
The HDFC said home loans up to Rs 30 lakh  will attract 10.25 per cent (floating rate) and 10.5 per cent on loans on Rs 30.01 to Rs 75 lakh.

Loans above Rs 75 lakh will attract interest rate of 11 per cent, it said. Banks have been on a rate hike spree since the Reserve Bank's decision to raise short-term key rates. Over a dozen banks including SBI, Punjab National Bank, ICICI Bank, Oriental Bank of Commerce and Corporation Bank have raised interest rates so far this month.

Most of the banks hiked lending rates by 50 bps while SBI has taken a more aggressive stance by hiking lending rates by 75 basis points.

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