Have you any ongoing Home Loan availed through HDFC? If yes, be ready to pay higher equated monthly instalments (EMIs) because the largest housing finance company of India, HDFC, has hiked its lending rate on Monday.
HDFC has decided to increase its interest rate before fourth bi-monthly monetary policy review by Reserve Bank of India (RBI).
HDFC has raised its RPLR (retail prime lending rate), on which it benchmarks its adjustable Home Loans interest Rates by 10 basis points (bps), with effect from 1st October, 2018 as per its recent statement to the stock exchange.
Previously, HDFC increased its Home Loan interest rates in August by 20 bps after MPC (Monetary Policy Committee) of RBI, which lead a hike in key repo rate by 25 bps to 6.50%.
Several other banks have followed the lead and have increased their MCLR (marginal cost of lending rates).
In its upcoming monetary policy review (starting from 3rd October, 2018), RBI is likely to hike the repo rate by 25 bps as inflation is expected to increase further due to higher prices for crude and the weakening rupee.
Repo rate (or Repurchase Rate), is the rate at which the central bank RBI lends money to all commercial banks against pledging the government securities, whenever the banks require funds to meet their daily obligations.