HDFC Rate Hike: HDFC's home loan becomes costlier, lending rate hiked by 50 basis points

After the hike in the repo rate by the Reserve Bank, the leading private sector financier HDFC has increased its lending rate. This is the first hike by a financial institution after raising the benchmark interest rate to check inflation. HDFC Limited on Friday increased its lending rate by 50 basis points. This will increase the EMI of HDFC Housing Loan.

The country's largest housing finance company said that HDFC is increasing its retail prime lending rate (RPLR) on housing loans. The Adjustable Rate Home Loan (ARHL) is being brought in line with an increase of 50 basis points. This is the seventh increase by HDFC in the last five months.

Other financial institutions and banks are expected to hike interest rates after the RBI hiked the key interest rate by 50 basis points on Friday. The Monetary Policy Committee (MPC) in its meeting today has decided to increase the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points to 5.90 per cent. Let us tell you that after an unexpected increase of 40 basis points in the repo rate in May, the RBI has increased the repo rate by 50 bps in the months of June and August. In this way, this is the fourth consecutive increase made by RBI.