HDFC, India's largest housing finance company, has raised interest rates on fixed rate home loans by 25 basis points (0.25 per cent).
The loans will be offered to customers in a band of 7.5 per cent to 8.5 per cent now.
The housing finance company ha, however, not changed its floating rates. With HDFC having taken the lead, other housing finance companies are likely to follow suit soon.
This also reinforces the estimate made by credit rating agency Crisil that interest rates are likely to firm up by 1 per cent during 2004-05.