Finance

EMIs set to go up as HDFC Bank hikes lending rate by 35 basis points – check new rates

HDFC Bank lending rate hike: India’s largest private lender HDFC Bank raised the lending rate by 35 basis points across loan tenures, according to the bank’s website. This is mainly done on the back of a key interest rate hike from the Reserve Bank of India, which is again likely to happen in June monetary policy.

The parent company of the lender – HDFC along with other banking and finance entities have also hiked the lending rates following an increase in the repo rate and cash reserve ratio by 40 basis points and 50 basis points, respectively, last month.

Tenor-wise MCLR effective June 7, 2022, as compared to May 7 hike:

Overnight | Old rate — 7.15 per cent; New rate — 7.50 per cent

One month | Old rate — 7.20 per cent; New rate — 7.55 per cent

Three months | Old rate — 7.25 per cent; New rate — 7.60 per cent

Six months | Old rate — 7.35 per cent; New rate 7.70 per cent

One year | Old rate — 7.50 per cent; New rate 7.85 per cent

Two years | Old rate — 7.60 per cent; New rate 7.95 per cent

three years | Old rate — 7.70 per cent; New rate 8.05 per cent

Earlier, HDFC raised its benchmark lending rate by 5 basis points on May 29, 2022. The rate increase of HDFC is in line with other lenders, including the State Bank of India and Bank of Baroda.

According to an official statement, “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.”

Interest rates are expected to harden in the coming months as global inflationary fears have been stoked due to geopolitical tensions, mainly due to the Russian invasion of Ukraine. This prompted the Reserve Bank earlier this month to raise the inflation target.

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