Have a home loan from HDFC? Be ready to pay higher EMI

Housing finance major HDFC and state-run Punjab National Bank on Tuesday announced up to 25 basis points increase in their lending interest rates, making their new and old loans expensive for consumers.

The revised rates would be effective from March 1.

Mortgage lender HDFC has increased its retail prime lending rate by 25 basis points to a minimum of 9.20 per cent.

The second-biggest public sector lender, Punjab National Bank (PNB), increased its Marginal Cost of Funds Based Lending Rate (MCLR) by 10 basis points across all tenure.

The benchmark one-year MCLR, used to price most of consumer loans such as auto, personal and home, has been revised upwards to 8.5 per cent from 8.4 per cent, PNB said in an exchange filing.

HDFC increased its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 25 basis points, with effect from March 1, 2023, the mortgage lender said in a statement.

Special offer 8.70 per cent per annum applicable for customers availing loan with a credit score of 760 and above and availing disbursement (part or full) will continue till March 31, 2023.

Earlier this month, the RBI hiked key benchmark policy rate by 25 basis points to 6.5 per cent, citing sticky core inflation.

This was the sixth hike in interest rates since May last year, taking the total quantum of increase to 250 basis points.

Following the rate hike by the central bank, State Bank of India (SBI), the country's biggest bank has hiked the MCLR by 10 bps across tenures, making most consumer loans such as auto or home loans costlier for borrowers.

The new rates came into effect from February 15.

Private sector Kotak Mahindra Bank too increased its lending rates by 5 basis points across tenures.