HDFC Hikes Lending Rates
India’s largest house finance banking company HDFC has announced raised lending rates by 75 basis points for new loan seekers, and on the other hand, the interest rate is up 50 bps for the existing customers.
The 50 bps hike will translate into a Rs 32 hike each month on a loan of Rs 1 lakh borrowed for 20 years. Yet HDFC’s after hike rates are cheaper than its nearest rival ICICI Bank which annunciated a rate hike last Week. Last week, ICICI Bank increased its benchmark advance rate to 15.75%, while Yes Bank hiked its PLR to 14.75%. However, the state-owned banks are yet to consider their lending rates.
After the Reserve Bank of India (RBI) announced an increase in cash reserve ratio, repo rate and a reduction on interest paid on CRR, many banks are in line to increase their lending rates
On Monday, HDFC Bank and UTI Bank have both jacked up PLR from 14% to 15%.
HDFC’s current rate loan for new customers is now pegged at 11.25%, while customers borrowing at a fixed rate will be charged 13.25%. Its prime lending rate (PLR) has now been revised to 14.25%, up from 13.5%.