One basis point is one-hundredth of a percentage point.
The latest increase means the minimum rate for a borrower with a credit score of more than 780 is now at 7.05%, up from 7%.
HDFC, which funds four of 10 financed homes in the country, has increased interest rates for existing borrowers by a cumulative 40 bps.
On May 1, HDFC hiked its benchmark rate by 5 bps and followed it up with a 35-bps increase on May 7, following the Reserve Bank of India’s (RBI) surprise 40-bps rise in its benchmark repo rate and a 50-bps increase in the cash reserve ratio (CRR) on May 4.
Repo rate is the rate at which banks borrow from RBI. CRR is the percentage of deposits that banks need to compulsorily maintain with RBI without earning interest.
The latest increase means borrowers below a credit score of 780 will have to pay a minimum of 7.15% for loans up to 30 lakh and 7.40% for loans between 30 lakh and 75 lakh.
Loans above 75 lakh will be charged 7.50%.
HDFC offers a 5-bps discount for women borrowers in all categories.
Separately, ICICI Bank also hiked its marginal cost of lending rate (MCLR) by 30 bps across all tenures, its first change in the borrowing rate since July 2021.
Rates updated on its website showed that overnight and one-month MCLR has been hiked to 7.30% effective June 1.
A spokesperson for ICICI Bank confirmed that the hike was the first in more than a year and its first such action on rates since it cut the MCLR by 5 bps in July 2021.
The 30-bps hike means that the three-month MCLR is now 7.35%, six-month at 7.50% and one-year MCLR is at 7.55%.
Public sector lender State Bank of India’s (SBI) three-month MCLR is 6.85%, six-month at 7.15% and one-year MCLR is at 7.20%.
