Home loan EMIs to go up as HDFC hikes interest rate
The country’s largest housing finance company HDFC, state-owned Punjab National Bank (PNB) and ICICI Bank on Wednesday announced an increase in their lending rates. While HDFC increased its Retail Prime Lending Rate (RPLR) on housing loans, PNB and ICICI Bank have announced a hike in their marginal cost based lending rates (MCLR), a move that will lead to an increase in EMIs for borrowers,
The revision follows an off-cycle rate increase by the Reserve Bank in May. The central bank hiked the repo rate — at which it lends short-term money to banks — by 0.40 per cent to 4.40 per cent.
HDFC
HDFC on Wednesday announced to increase its Retail Prime Lending Rate (RPLR) on housing loans by 5 basis points. The revision would come into effect from today itself.
“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 June 1, 2022”, the company said in a statement.
The upward revision in rates will essentially lead to an increase in EMIs for borrowers. This is the third time HDFC has hiked its RPLR in the last one month. In May it hiked rates twice for a total of 35 bps.
PNB
PNB said that it has raised its marginal cost of funds-based lending rate by 15 basis points or 0.15 per cent across all tenures. The new rates are effective from June 1, PNB said in a regulatory filing.
With the revision, one-year MCLR has increased to 7.40 per cent from 7.25 per cent earlier. Most of the loans are linked to the one-year MCLR rate. The overnight, one-month and three-month MCLR rose by 15 basis points to 6.75 per cent, 6.80 per cent and 6.90 per cent, respectively, whereas the six-month MCLR increased to 7.10 per cent. At the same time, three-year MCLR increased by 0.15 per cent to 7.70 per cent.
ICICI Bank today also revised the marginal cost of funds-based lending rate with effect from June 1, 2022, according to its website. Besides, Bank of India also raised marginal cost of funds-based lending rate on some tenor with effect from June 1, 2022.
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