Mortgage lender HDFC Ltd on Saturday announced an increase in its benchmark lending rate by 30 basis points (bps), a move that will make loans dearer for both existing and new borrowers.

The move comes just days after several lenders, including ICICI Bank, Bank of Baroda and Bank of India, raised interest rates following the Reserve Bank of India's surprise repo rate hike on Wednesday.

"HDFC increases its Retail Prime Lending Rate (RPLR) on housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 30 basis points, with effect from May 9, 2022," the housing finance company said in a statement.

The revised rates for new borrowers range between 7 per cent and 7.45 per cent, depending on credit and loan amount. The existing range is 6.70 per cent to 7.15 per cent.

For existing customers, the rates would rise by 30 basis points or (0.3 per cent).

Earlier this month, HDFC had increased its benchmark lending rate by 5 basis points making EMI for existing borrowers expensive.

HDFC follows a 3-month cycle for repricing its loans to existing customers. So, the loans will be revised in sync with increased lending rate based on the date of the first disbursement.

Financial institutions are on an interest rate hike spree following increase in repo rate and cash reserve ratio (percentage of total deposit of the banks kept with RBI) by 40 basis points and 50 basis points respectively announced by the RBI earlier this week.

After an out-of-turn Monetary Policy Committee (MPC) meeting, the Reserve Bank on Wednesday hiked the benchmark repo rate -- the short-term lending rate it charges to banks -- by 0.40 per cent to 4.40 per cent with immediate effect, aimed at taming soaring inflation.