IDBI Home hikes home loan rates

IDBI Homefinance will raise the floating rates on its home loans by 25 basis points with effect from Thursday.

The revised rate for loans up to 5 years will now be 7.75 per cent, for above 5 years and up to 15 years it will be 8.25 per cent and for above 15 years and up to 20 years the rate will be 8.5 per cent, the company said on Wednesday.

The interest rates on fixed-rate loans remains unchanged.

The new rates will apply to all existing and new borrowers. Unlike many other banks and housing finance companies, IDBI Homefinance had not changed interest rates despite a rise in the benchmark reverse repo rate by 25 basis points to 4.75 per cent in October, the central bank's first increase in four years.

IDBI Homefinance is a subsidiary of Industrial Development Bank of India.