HDFC hikes floating rates by 0.5%

HDFC has hiked interest rates for floating rate home loans by 0.50 per cent with a corresponding change in retail prime ending rate, effective November 22, but has left the fixed rates untouched.

The revised rates for floating rate home loans would be 7.5 per cent onwards.

The fixed home loan rates would continue to range between 8.25 per cent to 8.75 per cent, HDFC said on Saturday.

HDFC follows a three-month reset cycle for all its floating rate loans and the change in RPLR would impact the existing customers based on the date of their disbursement.

The revision in RPLR would result in revision in the repayment term for existing customers while their equated monthly instalment would remain unchanged. Hence there would be no immediate increase in cash flow for existing customer, it said.

The revision is in line with the hardening of interest rates in the economy due to rising inflation and shrinking liquidity in the domestic market.

The bond prices too have moved up by two per cent during the past few months and the cost of borrowing for triple-A companies from institutional investors have increased since April, it said.