New Delhi: HDFC Ltd, a mortgage lender, upped its benchmark lending rate by 5 basis points on Sunday, raising EMIs for existing borrowers.
Other lenders, such as the State Bank of India and Bank of Baroda, have raised their rates as well.
“HDFC increases its Retail Prime Lending Rate (RPLR) on Housing loans, on which its Adjustable Rate Home Loans (ARHL) are benchmarked, by 5 basis points, with effect from May 1, 2022,” the company said in a statement.
For new borrowers, there is no change in the lending terms. New borrower rates range from 6.70 percent to 7.15 percent, depending on credit and loan amount.
SBI and other lenders boosted benchmark lending rates last month, increasing EMIs for existing customers.
Interest rates are projected to rise in the next months as geopolitical tensions, mostly owing to Russia’s invasion of Ukraine, have fuelled global inflationary fears. This caused the Reserve Bank to boost its inflation target earlier this month.
Even while the key repo rate, or short-term lending rates to banks, remained constant, the RBI said it would focus on removing accommodation to keep inflation within the target range.
The Reserve Bank of India (RBI) has been obliged to keep retail inflation at 4%, with a 2% tilt on each side.
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