HDFC Bank has raised its retail prime lending rate on home loans by 30 basis points with effect from May 9.
New Delhi: HDFC, on Saturday (May 7), announced that India’s top housing finance firm would raise its retail prime lending rate on home loans by 30 basis points with effect from May 9, according to an exchange filing on Saturday.
The latest hike in the retail prime lending rate on home loans will lead to an increase in the EMIs paid by borrowers. HDFC’s decision to hike the rates has come after the Reserve Bank of India (RBI), early this week, increased the repo rates.
The RBI increased the repo rate by 40 basis points to 4.40%, in a first-ever change in the rate in two years and its first rate hike in nearly four years.
Prior to HDFC, several other public and private lenders have increased lending and deposit rates after RBI’s surprise move on Wednesday. For instance, ICICI Bank and Bank of Baroda (BoB) have increased the external benchmark lending rate by 40 bps.
“ICICI Bank External Benchmark Lending Rate” (I-EBLR) is referenced to RBI Policy Repo Rate with a mark-up over Repo Rate. I-EBLR is 8.10 per cent p.a.p.m. effective May 4, 2022,” the private lender’s site read.
EBLR is the lending rate decided by the banks after taking into consideration external benchmarks. These factors include repo rate, reverse repo rate, and other factors. In simple terms, EBLR is the minimum rate of interest at which borrowers can take money from the banks.
