HDFC Home Loan Rate: HDFC raises home loan rate for third time in a month

Hosuing Development Finance Corp Ltd (), India’s largest mortgage lender which finances four out of ten financed homes in the country, has raised its retail prime rate (RPLR) – the benchmark indicator for home loans to borrowers – by 5 basis points, its third increase in a month.

One basis point is 0.01% percentage point.

The latest increase means that the minimum rate for a borrower with a credit score above 780 with HDFC is now 7.05%, up from 7%. It raised the interest rate for existing borrowers by a cumulative 40 basis points.

Earlier on May 1, it raised its benchmark rate by 5 basis points and followed it with a 35 basis point hike on May 7, following the surprise 40 basis point hike in the Reserve Bank of India (RBI) of its benchmark repo rate and a 50-basis point increase in the cash reserve ratio (CRR) on May 4.

The repo rate is the rate at which banks borrow from RBI. The CRR is the percentage of deposits that banks are required to hold with the RBI without earning interest.

The latest increase means that borrowers below a credit score of 780 must pay a minimum of 7.15% for loans up to Rs 30 lakh and 7.40% for loans between Rs 30 lakh and Rs 75. lakh. Loans above Rs 75 lakh will be charged at 7.50%. HDFC offers a 5 basis point discount to female borrowers in all categories.


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