Housing Development and Finance Corporation (HDFC) on June 9 increased its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 50 basis points (bps). The house loan rate hike comes into effect from June 10, 2022.
This is the fourth time that HDFC hiked its home loan rates in one month. The previous hike had come on June 1, when home loan rates had been increased by five basis points. Prior to that, the rates were hiked on May 9 (by 30 bps) and on May 2, by five bps.
Kotak Mahindra Bank and ICICI Bank have also hiked their interest rates recently. While Kotak Mahindra Bank has announced a rise in interest rates on savings accounts and fixed deposits following the Reserve Bank of India (RBI) repo rate hike by 50 bps, ICICI Bank has increased rates on its FDs. The ICICI Bank FD interest rate hike came into effect on June 7 and the Kotak Mahindra Bank rate hike will come into effect on June 13.
The RBI’s monetary policy committee (MPC) hiked the repo rate -- the key policy rate at which the central bank lends short-term funds to banks -- by another 50 basis points on June 8.The move that aims to contain high inflation has raised the RBI repo rate to 4.9 percent.