MUMBAI: Leading housing finance banks have raised the lending rate of housing loans again. HDFC has lifted its benchmark lending rate by 5 basis points(100 bps = 1 percentage point). The interest rate for new and existing borrowers will rise from 7-7.45 % to 7.05-7.50% from June 1.
“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from June 1, 2022,” HDFC stated.
ICICI Bank hiked its MCLR by 30 basis points across the board, following an increase in the cost of funds consequent to the liquidity of the central bank. Punjab National Bank also raised its marginal cost of funds-based lending rate by 15 bps or 0.15 % across all tenures.
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Bankers said that the current rate hike will not impact demand as rates are still below the pre-pandemic level. When the RBI reviews its policy rate next week, it is expected to raise rates again. Shaktikanta Das, RBI governor has previously stated that a rate hike was a “no brainer.”
Owning or Buying a vehicle will also cost more with the rise in third-party premium insurance by 6-23%. Even though common people are in grief, this is the beginning of the end of the low-interest regime that existed for the last few years. The interest rate cycle turned by RBI’s surprise 40 basis point hike in Repo rate.