HDFC on Saturday hiked home loan rates for all customers by 30 basis points with effect from May 9. This comes after the hefty increase of 40 basis points in the policy repo rate by the Reserve Bank of India (RBI) earlier this week.

The country’s largest mortgage lender on Saturday said the retail prime lending rate (RPLR) on housing loans against which its adjustable rate home loans (ARHL) are benchmarked will go up by 30 basis points. This will lead to a similar increase in home loan rates for both existing and new customers.

On May 1, the corporation had raised its RPLR by 5 basis points, but this was limited only to existing customers. The latest revision would thus mean that existing customers will see a 35 basis points rise in their interest rates. For existing customers, the corporation follows a three-month cycle (from the date of first disbursement to a particular borrower) where floating rate loans are re-priced.

Following the latest revision, new customers having a credit score of 750 and above will be charged an interest rate of 7 per cent. For women borrowers obtaining loans up to Rs 30 lakh, the interest rate stands at 7.05 per cent (6.75 per cent earlier), and for other borrowers it is at 7.10 per cent.

Similarly for home loans between Rs 30-75 lakh, the interest rate stands at 7.30 per cent and 7.35 per cent, respectively. For loans above Rs 75 lakh, the interest rate applicable on women borrowers is 7.40 per cent and for others, it is 7.45 per cent.

Indian Bank

State-owned Indian Bank on Saturday said it has revised the repo linked lending rate from 4 per cent to 4.40 per cent with effect from Monday. The revised lending rate of the bank shall be effective from May 9 for new customers and from June 1 for all the existing customers of the bank.

A number of banks, including ICICI Bank, Punjab National Bank, Bank of Baroda, Central Bank of India and Bank of India, have announced plans to raise the repo linked lending rate.

After the RBI had raised the policy repo rate, Bank of Baroda was the first bank to revise its lending rates.